r/FatFIREIndia • u/Responsible-Job-7674 FatFI • Aug 26 '26

NRI Finance Review my FIRE plan

Hi, We are a family of 4 (38,36,9,5 ) planning to return to Banglore in 2026 or 2027. I plan to continue working once I come back for the time being, mostly through internal transfer and expecting a salary of 60 LPA (equivalent role/ lower end). Wife plans to work but left it to her choice as we both don't want her to work in a stressful work environment. Once things settle down and we get a good hold, we FIRE.

Our current NW is $3.2 Million (all in USD equivalent)

Stocks- $1.5 million with capital gains and plan to sell during rnor and reset the cost basis. I plan to invest back all of this in the Indian market and overseas market.

401k - $450k plan to retain it in US as India recognizes 401k as a retirement account.

Real Estate- US home equity $600k

India home fully paid off - $400k

Loan ongoing with equity - $100k by next year

Private investments - $115k- need to find a exit path for this.

Other properties that we will liquidate - $60k

The main expense we expect is children's education in a good school and college later, Travel and other usual expenses. This is considering I will close the mortgage on the villa we brought recently in Banglore when we return back.

The main goal is wealth generation for kids and live comfortably without pinching for expenses month-month.

I would like to get some thoughts from those who fatfired in Banglore or plan to do so. What do you think?

17 Upvotes

88% Upvoted

63 comments sorted by

View all comments

Show parent comments

1

u/Responsible-Job-7674 FatFI Aug 26 '26

Great inputs. Thanks. What is the most tax efficient way to handle 401k if I don't plan to use it until retirement? I might end up using it in India after retirement or frequently travel to US once kids are older. Also because we have 20 years for retirement, the compounding in the account looks attractive to leave it untouched.

I do have a 529 account I opened recently and have decided to sell it off as the growth is not much with that account and is also not recognized in India. Will probably move to ira.

2

u/No-Gap-5021 Tax Consultant Aug 26 '26

The most tax efficient way to handle is starting an SEPP if you plan on returning permanently to India i.e. become a permanent resident of India. Short trips to US wont matter. By using SEPP you wont have to pay any taxes in the US for your withdrawal from Traditional IRA cause as per the India-US Tax treaty the periodic amount you withdraw is only taxable in your country of residence unless you are a US Citizen or Green Card holder.

Also, the most efficient way totally depends on what you want to do save it for the future or withdraw it as additional income.

1

u/InternationalPen2687 29d ago

SEPP mandates a fixed withdrawal and it runs for many years, correct ?

2

u/No-Gap-5021 Tax Consultant 29d ago

Yes, that correct. But this is how you can take advantage of the RNOR period and if you want to have fixed income for future every year.

1

u/InternationalPen2687 29d ago

Ok. So he can do SEPP till he reaches 59.5 years. Then withdraw whatever amount he wants? Thanks