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What happens to US retirement fund when worker returns to India?

short by Vaishnavi Mishra / on Sunday, 11 October, 2026
Returning to India does not require employees to close their US 401(k) retirement accounts. They can retain the funds in their employer’s plan or transfer them to an Individual Retirement Account (IRA), an expert said. Early withdrawals may attract an additional 10% US tax. Once a person is no longer considered a US tax resident, the plan deducts 30% tax.
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