u/maincognito

▲ 9 r/NRI_Finance+1 crossposts

Hi all,

I moved back to India around mid-2025 after working in the U.S. for many years (H1B). I’ve filed my final U.S. taxes as a full-year resident (included India income) and now have no U.S. income going forward.

I’ll likely be in RNOR status in India for the next ~2–3 years.

I have ~$150k in a traditional 401(k)/rollover IRA and a small Roth IRA. I want to withdraw funds over the next few years in the most tax-efficient way.

Questions:

- Best strategy to withdraw (spread over years vs lump sum)?
- Ideal yearly withdrawal amount to minimize U.S. tax?
- Is the 10% early withdrawal penalty unavoidable?
- During RNOR, are these withdrawals taxed in India?
- Any key forms or compliance steps to submit?
- Roth conversion vs straight withdrawal — worth it?

Would appreciate insights from anyone who’s done this or tax pros here. Thanks!

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u/maincognito — 12 days ago