can i take my retirement -401k amount to india, if i retire early(40 yrs)?

if so, do i need to pay 10% penalty for early withdrawal. am i taxed in india as well as for this income as i pay taxes in usa as well. - xyz

Public Comments

1. You would need to pay regular taxes plus a 10% penalty if you withdrew your funds from the 401k. The 10% penalty applies to people who have not yet reached age 59 1/2. You need to explore this issue very thoroughly before taking the 401k money. If you leave your present company and do a rollover to another retirement account and you do not touch the money then you will avoid any penalty and you will not have to pay federal income tax on it until you begin to withdraw the funds. You should speak with a tax advisor. If you need the funds and take them then you will pay out taxes and penalty. I have no idea about tax consequences for India.
2. You will pay a 10% penalty plus income tax on your early distribution if from your 401k regardless of where you are living. Are you a US citizen? Then you will continue to pay taxes on the earnings from your withdrawal regardless of where you are living or where the money is invested. If you are also paying foreign taxes, you can get a credit for those taxes. If you are not a US citizen, then when you move to India and take your money out of the US, you will not owe US taxes on the earnings.