401(k) Return-to-India: Cash Out vs Keep Calculator

Moving back to India? Compare cashing out your 401(k) now (after penalty + withholding) against leaving it to compound in USD for retirement.

Your details

Current 401(k) balance

Your age today

yrs

Under 59½ triggers the 10% early-withdrawal penalty.Tax / withholding rate

~30% is the standard non-resident withholding; use your bracket if you'll still be a US resident.Years until you withdraw / retire

yrs

Expected annual return

Long-run US equity returns are often modeled at 6–8%.

Option A — cash out now

Net cash in hand today

$60,000

10% early-withdrawal penalty$10,000

Tax / withholding (30%)$30,000

Total lost to penalty + tax$40,000

Option B — leave it to compound

Projected balance in 20 years

$386,968

After estimated tax at withdrawal$270,878

If you cashed out & reinvested instead$232,181

Advantage of keeping it invested

$38,697

Keeping it invested looks far better. Cashing out forfeits $40,000 immediately. Under the India–US DTAA, you can usually keep the account and manage withdrawals tax-efficiently after you leave.

Estimate only. Actual tax depends on residency, DTAA treaty positions, state tax, and distribution type. The 10% penalty applies to most withdrawals before age 59½. Consult a cross-border tax professional.

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Educational estimate only. This calculator provides general estimates and is not financial, tax, legal, or immigration advice. Rules change and vary by state, visa status, and individual circumstance. Consult a qualified professional before acting. See our full disclaimer.

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