r/backtoindia

Hey everyone. Long-time lurker, finally posting. I'm relocating back to India in June and trying to figure out the financial loose ends before I leave. Three things I'm stuck on:

1. 401(k) — leave it, roll it over, or cash out?

My 401(k) is with my former employer's plan. I know cashing out triggers taxes + 10% early withdrawal penalty, so I'd like to avoid that. Is rolling it over to a Traditional IRA the cleanest move for someone living abroad? Any brokerage recommendations that work well for NRIs? Can I still contribute or just let it sit and grow?

2. E*TRADE brokerage account — keep or transfer?

I have stocks and RSUs vested in E*TRADE. I've heard some brokers close accounts once you change your address to outside the US. Has anyone dealt with this? Should I sell before leaving, transfer to a more NRI-friendly broker (Fidelity? Schwab International?), or is it fine to just update my address and keep it as-is? Also curious about FBAR/FATCA implications once I'm a resident in India.

3. US credit cards — cancel or freeze?

I have a few cards with solid credit history (5–8 years). I know closing them can hurt my credit score. Is it better to freeze/lock them and keep a small recurring charge to avoid being closed for inactivity? Or does it make more sense to cancel the ones with annual fees and keep the no-fee ones alive? Any cards that work particularly well abroad with no foreign transaction fees?

Appreciate any firsthand experience as especially from folks who've already been through the relocation and sorted their US finances from India.

Thanks in advance 🙏

I analyzed the top 50 posts on this sub and all their comments. When you look across all of them there's some good advice I think (if we assume the posts/comments are not flooded with bots).

It takes 12-18 months to feel normal again

Almost everyone says this. The first few months feel exciting. Then around month 4-6 you start comparing everything to wherever you came from, and a lot feels worse. One commenter put it well: "Stop comparing both places. It took me about a year and a half to adjust." I'm 4.5 months in 🙈

There's a second dip around 3-4 years. Seems that if you get past that you're good.

Some solid advice that was repeated: write down your reasons before you leave. There will be months where you think you made a mistake.

Money and city

When you look at who's happy vs who regrets it, the most important questions are: Are they earning in foreign currency? And are they in a city that works for them?

Happy posts: remote work or freelance earning USD, living in Bangalore or tier-2 South India. Regret posts: took an Indian salary at an Indian company, living in NCR/Delhi.

NCR comes up constantly but it's never good. Worst work culture, worst air, worst everything else according to this sub. I guess it might be biased (see the 5th point below) but it's consistent across maybe 15 different posts.

Everyone recommends living in a gated community close to your office. Solves traffic, infrastructure, domestic help, kids activities all at once. If you're remote or FIREd, tier 2/3 South India (Coimbatore, Mysore, Trivandrum, Cochin) keeps getting recommended.

Work culture

People talked about health issues they faced due to the work culture. One person had a heart attack. Mnay mentioned depression, anxiety, and even hair loss.

One OP tried managing their Indian team with the same trust-based flat structure they used in the US and the employees just took advantage of it. Had to switch to micromanagement with twice-daily check-ins.

The advice was to avoid working for an Indian company if you can. Earn foreign currency, start something, or join a product company in Bangalore. The ones who did this are the happy ones.

Your spouse has to actually want this

Not surprising. One pperson said it bluntly: everything else about moving back is manageable but this isn't. If your partner doesn't want to be here, nothing else matters. So open your mind for a different view.

One OP returned, their spouse never accepted the move, wanted to go back. It messed up the marriage and they ended up back in the US dealing with visas again. Another poster's husband romanticized Pune because his rich cousins live there, but they weren't rich..

This sub skews negative

People posting here seem to be in crisis mode (layoffs, forced visa returns) or regretting. The ones doing fine don't make dramatic posts. One commenter guessed maybe 1% of returnees are on Reddit talking about it. Or maybe its bots??

Do a trial run

Few people seem to do it. Best advice seems tobe: work remote from India for 3-4 months before committing to anything permanent. Costs almost nothing compared to moving your whole life and then finding out you hate it.

This post intentionally didn't get into the tax/financial stuff specific to US to India move (401k, SEPP, Form 67, phone numbers, banking) to keep the info more generally useful. Happy to share that separately if it's helpful.

Hope this helps!

PS. About me: I'm Canadian, wife is Indian. We moved to Bangalore in December to be near her family. So I'm coming at this from the non-Indian spouse side, which is a bit different from most posters here, but I still found a lot of the above useful.

Going through a lot yaar… need genuine advice from people who’ve gone through something similar, preferably in their 30s or older because I feel struggles hit differently then compared to your 20s.

My dad’s health isn’t good, I’m abroad but mentally I feel like I’m still in India all the time. Visa slot situation is messed up for almost 1.5 years now, work is getting affected badly, and my manager is unhappy because honestly I haven’t been able to focus properly.

I genuinely don’t know how to navigate this phase or even what to think anymore. Is life in your 30s this hard for everyone at some point? How do you keep functioning when multiple parts of life are falling apart together?

Would really appreciate hearing your experiences or how you handled difficult phases like this.

== Used AI for reframing my question ==

Tldr - SDE 2 at Amazon Seattle on an L1 visa facing severe burnout. Planning to return to India by year-end 2026. Seeking the best legal and financial path to secure a ~6-month break to recharge, wrap up personal affairs, and explore the US without jeopardizing my or my wife’s (L2 visa) status.
Both are 31 year olds and she also works as SDE2 in Seattle on L2 visa for some other IT company.

Current Situation

• Visa Status: On L1-B (valid until Feb 2027); 4 years total in the US. Wife is an SDE working for another firm on L2 visa. Came to US from India in Jan 2022. Never got picked in H1B so couldnt switch either.
• Performance: Consistently rated "Exceeds" since 2022 in a Tier-1 team as I worked relentlessly in hope of promotion to become SDE3 but market , budget and team politics didnt help. And further added fuel to my lack of motivation.
• Problem: Extreme burnout due to high-complexity, "soul-draining" projects and lack of work-life balance.
• Objective: Secure 5–6 months of downtime (ideally with some pay/vesting) and exit the US by late 2026.

Key Questions & Options

1. FMLA (Family and Medical Leave Act)

• Are L1 visa holders eligible for FMLA?
• What are the typical durations allowed, and does RSU vesting continue during this period?
• Would taking FMLA have any legal or professional impact on my wife’s L2 status or her current employment?

2. Short-Term Disability (STD) for Burnout

• Can STD be utilized for mental health/burnout in Washington state?
• What is the typical payout percentage and maximum duration?
• What documentation is required (e.g., therapist's recommendation, PCP note)?

3. Internal Transfer

• Is it feasible to switch to a "low-intensity" team within Amazon Seattle for the final 6 months?
• Are there specific orgs or team types known for better work-life balance?

4. Contingency & Grace Periods

• If I transfer and am later laid off or placed on a performance plan (PIP), what is the actual legal grace period to remain in the US?
• Does the 60-day grace period apply to L1 holders and their L2 dependents?

Baseline Goals

• Legal Status: Remain in the US legally through the end of 2026.
• Financials: Prioritize RSU vesting and partial salary if possible, though my wife’s income can cover living expenses.
• Exit Plan: Use the time to travel the US and handle the logistics of a permanent move back to India.

Looking for serious help as everyday feels a burden and i want to go back to India any day. but i think practically there are options to plan things smoothly as well.

Not going to join Amazon India and will start fresh with clean slate in India.

Hey everyone, I’m in a bit of a dilemma and wanted some honest opinions.

I recently completed my MS in Supply Chain Analytics from a well-known university in the US. Before that, I had 5 years of experience as a Product/Program Manager in a manufacturing company in India.

I came to the US hoping to grow my career, but the market over the last year has been brutal. I’ve applied everywhere, had multiple interview rounds with good companies, but nothing is converting, mostly because of H1B sponsorship issues.

Now that my program is over, I don’t even have my on-campus job anymore, so survival itself is becoming stressful.

At this point, I’m stuck between two options:

1 Stay in the US and try building a manufacturing/startup idea I’ve been thinking about for a long time. It’s old-school manufacturing focused, but innovation-heavy, and I genuinely feel it has potential here.

2. Come back to India, where I know work culture is bit questionable, probably get a decent job, I don't know yet. The thing is I was making reasonable when I did quit my job in India and moved here. My purpose was/is to stay here, make life here(in the US). But reality is hitting me harder then expected.

The US market feels like an ocean. If the idea clicks, it could really become something big. But obviously there’s risk, uncertainty, visa pressure, and survival issues too.

Would genuinely appreciate hearing from people who’ve been in similar situations.

I have been in USA since 2013. Working since 2015 in good comfortable income. My wife also came to USA and working in top companies with good pay. She has no luck with H1B since 2015. Currently in H4 EAD. We both are software professionals with two young kids (5 and 2).

Considering visa situations, AI and economic uncertainty we have been thinking to move back to India or stay closer to India.

What are other countries are good option and why?

Adding more details - I have a more than comfortable life here with home and rental property. Manageable mortgages. Good 6 figures salaries and RSU.

We are 36 years. I don’t have a good path for career ladder and don’t want to stress and run too much to catch up with AI as a software developer. Not ready to retire as kids just starting their life and never know what would they need for future.

1. Long term looking to take a break. Run a business or do a start up. I don’t a purpose for work i do, the stress i go through raising family and money i earn. I feel post 40 health is more important.
2. Worried about kids considering all anti-indian sentiment in USA. I don’t want them to stay just into desi circle because they are welcomed growing up ( seen many instances where american born desi kids are not accepted much ).
3. Myself and wife both ok to move back india. But wondering if there are better places to live around.

Australia - same immigration issue.
Singapore - is good but I feel over saturated.

Hello all,

28M - I’ve been in the US for my masters in Industrial Engineering and my h1b was picked this year. Considering $70k salary, would you suggest to stay in the US and work for the same company or relocating and working in India would be preferable? TIA.

I have VTSAX for about 200K USD (90% of my current equity portfolio is this ) - I originally saved this for retirement, but looks like I have to go back to India!

Is it possible to manage this account from India ? I don’t want to lose out on USD to INR repatriation and also US low cost Index funds exposure in my portfolio.
Has anybody done it ? Pros and cons ? Any better alternatives!
Let me know if I m missing something basic and this is a blunder

Hi everyone, looking for some perspectives here. I am 40f married with 3 kids. We were in the US for 5-6 years, faced H1 issues and moved to Canada in 2017. We got PR and are now citizens. Both of us are in IT, doing modestly fine. I don't know if this is a midlife crisis, but the last few years, I've been wanting to go back. The usual reasons - aged parents, loneliness, weather, kids culture and upbringing etc. But I also have other reasons such as I've become quite religious and wanting to visit a lot of temples, wanting to learn classical music etc. I am not very comfortable driving, so I am unable to just go out on my own if I wanted to. We are also an interreligious couple, so I don't want to keep bugging my husband if I wanted to go. We've been ok as an interfaith couple, husband has no problem with what I do. Both parents have visited us many times and they've been quite decent about it too. It could also be that no one from their circle have seen how we live.

I don't see us retiring here or being happy here. My oldest is 9 so I feel this is the best time to move. I worry about the religion aspect and our career. I really want to move and am ready to move tomorrow if we could. My husband's on the fence. I really feel stuck here. I am just ranting so I'll stop. Looking for some perspectives here.

Edit: I guess I am not seeing any value living here when everything we like is back home. We came in our 20s when we were young and excited to be in a foreign country, but that's all gone now. I don't even have time to read a book here...

I'm devastated to the news of young people taking their lives due to the current job/visa situation in the US. Therr is one more incident today. Life is always unpredictable, there are no guarantees for many of the things we assume are certain. That said, here is an appeal to whoever feels this situation is permanent. Whether you are a NRI working on H1 or international student feeling crushed by an H1B lottery loss or a job that didn't come through, please hear this before you consider any extreme step. No visa, no job, and no amount of money is ever worth your life. Unlike many others in this world, you actually have a beautiful option. You can go back to India, a country where your cost of living is a fraction of what it is here, and most importantly, your family is right there waiting for you with open arms. The warmth of being close to your parents, siblings, fri3nds and loved ones is something no US salary can ever buy, and that support system alone can turn everything around. The H1B is not the end of the road. People have returned and built incredible careers, launched startups, and lived fuller lives than they ever would have on a work visa abroad. Please call your family today, tell them the truth, and know that they want you and not your dollars.

I may sound hypocritic as a US resident giving free advice, but trust me, there were similar tough times for many who were in US even in early 2000s. Whether it is dot Com boom (followed by job losses all around) or the financial crisis of 2007/2008, everyone saw these downturns. Things may take time, but eventually will become normal. Thanks to media, many in India now understand the reason of return. Recollect the cherishable moments of your life and stay strong. ​Return to India will turn much better yhan you anticipate and as said earlier, PLEASE DONOT take any extreme steps or follow any illegal path.🙏

PS: Applicable only for H1B of Indian Origin.

Full disclosure , I haven’t moved back yet.

But I’ve been seriously considering it, so I’ve been talking to a bunch of people who already did , plus my cousin is in HR back in India for a large US based retailer in Bangalore. I'll let you guess which one.

One thing that keeps coming up:

Leading with “I’m a US return” or NRI doesn’t really help in job searches and in some cases, it actually hurts.

From what I’ve heard:

• Hiring managers assume your salary expectations are inflated
• They think you might leave again if things don’t match your expectations
• There’s a perception you’ll keep comparing everything to life abroad
• Teams wonder if you’ll blend in with local work culture

So instead of being a strong advantage, it sometimes creates friction.

Not saying your experience abroad doesn’t matter it obviously does, but treating “US return” like a badge in every conversation doesn’t land the way people think it does. No one cares and it's not a big deal like it used to be in the early 90s or early 2000s.

Curious to hear from people who’ve actually gone through this.

Hi all,

I have been in the US for 7 years (3 years, masters and 4 years working). I am moving back to India at the end of August. I don’t plan to return to the US, at least to the best of my knowledge.

I've already decided, so this post is specifically for seeking advice on the logistics involved in the move. 

I’m trying to figure out the logistics and tax implications of the move, and how to handle my accounts (~$400K total net worth). I’ve read posts on this sub and done other research, but still feeling quite confused, both on the best option as well as the timing. 

Is it best to find and consult with a CPA, even with a relatively smaller net worth (relative to other NRIs at least)? If yes, if anyone has recommendations for a CA/CPA who has experience handling US to India moves, please do let me know.

Here’s my current financial overview and my plan. I’ve described what my tentative plan for each is, based on my current research, but would really appreciate any advice from folks who’ve made this move.  

1. Retirement (this is what I’m most confused about):
   1. $60K in my workplace SEP IRA account (no 401(K)
      • From what I’ve read online, I can roll this over into a Traditional IRA at Schwab. Is this the right move, and if yes, what tax implications do I need to keep in mind? Or should I just leave it as an SEP IRA? Should I make any  changes before or after the move?

       

   2. $35K in my Roth IRA account (Schwab)
      • This is the one I’m most confused about. Should I leave as is, until retirement? Withdraw during RNOR? I've read that India taxes Roth growth annually as ROR with no Section 89A relief — is this correct, and does it change the calculus?
      • I haven't made my Roth 2026 contribution yet. Based on my last year's MAGI and the fact that I won’t be earning for the full 2026 year, I think I will be allowed to contribute the max limit: $7K for 2026). Does it still make sense to do so, given my upcoming move?

    

2. Brokerage:
   1. $280K (ETFs) in my investment account (Schwab)
      • For this, I believe my best options are: (1) either leave untouched in Schwab until however long I don’t need the liquidity; or (2) withdraw gradually during my RNOR period. Is this right? What should I keep in mind about the W-8BEN requirement?
3. Savings:
   1. ~$30K in my savings account
      • I plan to move this to an NRE account or an RFC account - since these will be my main funds for the first 2-3 months in India. Is an NRE account best for this?

    

4. Other savings/investments:
   1. $10K in old I-bonds (bought in 2022):
      • I plan to liquidate this during the RNOR period.
   2. $10K in HSA (Fidelity)
      • No idea what to do with this; would appreciate advice from others.
5. Credit Cards:
   1. Planning to lock (not close) my no-fee credit cards. And leave one card (Chase Sapphire) unlocked to use, since it’s a useful travel card.
   2. However, I would then need to leave a bank account open to pay off that credit card.
6. Bank accounts:
   1. Chase checking account (for salary) as well as a Schwab checking account (use this one only when I travel internationally since the Schwab debit card allows for no-ATM-fee withdrawal)
      • My tentative plan is to close the chase account, but leave the Schwab account open. Is there value in leaving the Chase account open as well?

    

7. Indian bank accounts:
   1. One NRO account with HDFC. 
      • I’m planing to open an NRE or RFC account in the next month before I move. Is there anything to consider between the NRE and RFC options?

Is there anything else I should consider when figuring out my tax filings in India and in the US (for 2026, and later)? I've heard it's better to make the move out of the US  towards the end of the year tax-wise but that is not an option in my case.

This is all a bit overwhelming already, so I would really appreciate feedback and advice on my plan. Thank you!

I am 44F and planning to move to India without my family, husband and 6&8 year old kids. I always wanted to move back but life situations kept me in US. I will be financially independent in India. Do not need to work but wondering on doing something low key to have a routine. What can that be ?

Hi everyone, looking for thoughtful advice from families who have made a similar move.

We are a family of four, both parents originally from Hyderabad, and all of us are U.S. citizens. We have two boys one has completed 8th grade and the younger is in 5th grade. We are financially stable, and if we move, one parent would continue working while the other focuses on the kids and family.

We are seriously considering relocating to Hyderabad and enrolling the kids at Indus International School Hyderabad. The long-term plan would still be for both kids to do their undergraduate studies in the U.S.

The reason we’re considering this move is less about money and more about quality of life(not air or infrastructure 😉), belonging, and relationships.

Life in the U.S. feels increasingly busy, scheduled, and transactional. Even though we try hard socially, meaningful friendships feel difficult to build. We meet people, kids have playdates, parents meet occasionally, but many relationships feel surface-level conversations around vacations, kids, work, finances, but not the kind of deeper bonds where people share real life honestly.

I also struggle to picture retiring in the U.S., and I’m finding it hard to imagine spending another 8–10 years here until our younger child finishes school. It feels like half of life is being spent juggling work, household logistics, calendars, and routines.

At the same time, I’m conflicted. I want to do what’s best for the kids academically and socially, but also what’s right for us as a family. We’ve spent much of life chasing achievement, meeting expectations, and staying busy and now we feel tired and want a slower, more connected life.

I don’t know if this is a midlife phase, burnout, or genuine clarity.

I’d really value hearing from:

Families who moved back to India with middle/high school kids

Families who moved and later returned to the U.S.

Parents who chose to stay in the U.S. despite similar feelings

Anyone who can share what surprised them most after relocating

If we move, I would prefer it to be a long-term decision and not move back again.

Looking for honest perspectives positives, regrets, trade-offs, things we may not be seeing clearly.

I'll be honest, going to another country from India and building a life is one thing. But, coming back to your hometown can be more stressful and emotionally draining than one can imagine.

It's like trying to be back this person that you left and for a reason, and when you come back, people don't know you anymore, you don't know yourself anymore.

The worst part, you crave to go back to a country that first felt foreign, but now a home.

PS. NRI = Non Resident India. People who stay out of the country for more than 6 months, are considered NRI's.

TL;DR: As an NRI in India, your Roth gets taxed on annual growth (no Section 89A relief), exposed to 40% US estate tax at death, and locked until 59½. Better to drain contributions during the RNOR window and use taxable accounts with Ireland ETFs instead.

───

The Three Problems

1. India taxes Roth accruals every year — even without withdrawals

Once you're a resident in India, all dividends and capital gains inside your Roth are taxable income annually. You can't defer it. You must file Schedule FSI/FA disclosing everything every year or risk ₹10L+ penalties.

This is different from a regular brokerage, where you only pay tax when you sell.

2. Section 89A (tax deferral relief) doesn't apply to Roth

The main tool US expats use to defer Indian taxation on 401k/IRA income — Form 10-EE (Section 89A) — explicitly excludes Roth IRA.

Why? Because Roth withdrawals are tax-free in the US, so India says "there's nothing for us to defer." Confirmed by multiple cross-border CPAs.

Traditional IRA/401k? Gets the relief. Roth? Nope.

3. Estate tax trap: 40% above $60K

As a non-resident alien, your US estate tax exemption drops from $11.2M to $60K. Your Roth counts as US-situs property.

Die with $200K in Roth? The IRS takes 40% of the $140K above $60K = $56K gone.

───

The Play: RNOR Window

For 2–3 years after you return, India doesn't tax your foreign income. This is called RNOR (Resident But Not Ordinarily Resident).

During RNOR, act on both contributions AND earnings:

• Pull contributions: Zero US penalty, zero India tax, zero withholding

• On earnings, choose one:

• Convert to Traditional IRA (pay US tax on conversion, zero Indian tax during RNOR) → becomes Section 89A–eligible after RNOR

• Withdraw if needed (take the tax hit once, avoid 20+ years of annual reporting)

• Don't leave them in Roth post-RNOR — you'll face annual FSI/FA reporting and estate tax exposure for 20+ years

The RNOR window is your only clean opportunity to reposition. Don't waste it on contributions alone.

───

Better Alternative: Taxable Brokerage + Ireland ETFs

Instead of Roth, use a taxable account at Interactive Brokers with accumulating Ireland ETFs (like VWRA).

• No annual dividend reporting in India (accumulating = reinvested)

• Capital gains only taxed when you sell (12.5% LTCG after 24 months)

• Eliminates the 40% US estate tax trap

• Full flexibility to withdraw anytime

───

Action Items

• Stop Roth contributions → switch to traditional 401k/IRA

• Drain Roth contributions during RNOR (2–3 years post-return)

• Build wealth in taxable brokerage with Ireland ETFs

• File Form 10-EE (Section 89A) annually for 401k/IRA once you're ROR

───

Question for folks who've dealt with this: Is my understanding correct that Roth accruals get taxed annually in India as ROR with no Section 89A relief? Or am I missing something?

Also — has anyone actually taken a different approach with their Roth? What worked better for you?

Hey everyone,

I’m planning to move back to India due to the current H1B/visa situation in the US and wanted some realistic salary insights.

I recently completed my MS in Supply Chain Management from a reputed US university. Before that, I had 5 years of experience in India in manufacturing and supply chain, where I grew from Supply Chain Associate to Product Manager and managed end-to-end supply chain operations for 2 SKUs.

In the US, I:

1. Interned at Disney. (7 months)

2. Worked as a Supply Chain Research Analyst for different companies and projects (1.5 years).

3. Published research articles in top-tier journals.

4. Specialized in AI prompt engineering and built AI models/tools to solve real supply chain problems.

What salary range should I realistically expect in India with this profile?

Also, are Indian companies genuinely hiring for AI + Supply Chain roles, or is it still mostly hype?

Would appreciate honest insights.

Thanks!

I’m moving back to India permanently after working full‑time in the US for about 1.3 years. During that time, I contributed to a 401(k) and my employer matched it.

Please share your thoughts on what I should do to my 401(k), US phone number and bank account.

Hey everyone,

I’m trying to make a big decision and would really appreciate some grounded advice—especially from folks who’ve done the US → India move.

Background:

• Came to the US in 2021 for MS in CS
• Did ~1 year of internship + 3 years full-time.
• Fully paid off my student loan (~₹60L) through internships + job
• Helped my dad clear home loans as well
• Current savings: ~₹50L (I know this is on the lower side compared to some posts here)

Personal situation:
Things changed emotionally when my mom was diagnosed with a illness last year. She’s doing better now, but it’s unpredictable. Since then, I’ve been strongly considering moving back to India to be closer to family.

Current option:

• Got an internal transfer offer from my current employer in India
• Compensation in India: ~₹32 LPA (base)

My questions:

1. From a financial perspective, does it make sense to move now with ~₹50L savings and ₹32 LPA base?
2. Or would it be smarter to stay in the US for a couple more years, build a bigger corpus, and then move—given the uncertainty around my mom’s health?
3. For those who’ve moved back around this comp level, how did your savings rate and lifestyle adjust?
4. I don't care about AQI and Traffic, I know i can overcome that.

I feel like I’d be able to save a decent % in India too, but obviously the absolute savings will be lower than the US.

Would really appreciate any perspectives—financial or otherwise.

I used Chatgpt for drafting but content is real and would appreciate any advice.

I got selected for h1b but I'm still considering moving back to India next year just because I want to live close to my family and not have any visa headaches. I'm thinking of starting with a job in India and then eventually starting my own business.

My current comp is 110k USD(including bonus) in a suburb. What roles and salaries should I target?