Hi bluejeansman,
In ROR, there are only two kinds of foreign accounts - 1. Taxable 2. Tax deferred (like US 401ks/IRAs).
Roth IRAs fall into the taxable account category (unfortunately). All dividends and capital gains are taxable in the same tax year.
Since these are taxed annually, there should be no tax upon withdrawal.
For tax deferred accounts like 401ks/IRAs, one can choose to defer India taxes till he/she becomes a non resident again. If one withdraws from these accounts, then it will be taxable both in the US and India in the same year, so one can claim double taxation avoidance.
One can choose to also not defer and treat the 401k/IRA as a taxable account for purposes of India tax and pay tax on dividends and capital gains (this is the default option if one does not file a particular form choosing to defer).
In ROR, there are only two kinds of foreign accounts - 1. Taxable 2. Tax deferred (like US 401ks/IRAs).
Roth IRAs fall into the taxable account category (unfortunately). All dividends and capital gains are taxable in the same tax year.
Since these are taxed annually, there should be no tax upon withdrawal.
For tax deferred accounts like 401ks/IRAs, one can choose to defer India taxes till he/she becomes a non resident again. If one withdraws from these accounts, then it will be taxable both in the US and India in the same year, so one can claim double taxation avoidance.
One can choose to also not defer and treat the 401k/IRA as a taxable account for purposes of India tax and pay tax on dividends and capital gains (this is the default option if one does not file a particular form choosing to defer).
Statistics: Posted by codedude — Tue May 21, 2024 5:39 pm — Replies 18 — Views 3316
