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In USA:
1. Roll over your 401k to IRA and complete the process
before leaving. Allocate the funds of your choice in IRA. Understand the procedure for withdrawal of funds from
your IRA account.
2. Have atleast two bank accounts. Too many bank
accounts are messy. One bank account may not be enough. Choose atleast one of the big banks - like Citi, BoA who
have branches in India.
3. Consider opening a bank account in India in the same
bank after return.
4. Close all credit card accounts except one. Keep Visa
or Mastercard account - which can be virtually used anywhere. Discontinue AMEX or Discover card. So, earn cash
back bonus and other rewards before closing.
5. Open Mutual fund account in India, invest some in
bond funds with low maturity period in growth option. After a year when you withdraw this money, you will only
pay 10% tax. Also this will offer all the liquidity one need.
6. Avoid carrying cash during the travel back to India.
You will have many thoughts running your mind. This will be an additional burden. If you must, take traveller's
checks, sign them, and write down the numbers and send it as an email to your self. After cashing them you can
always delete your email.
7. Print and carry enough check books for your US
checking account. You will find it difficult to order printing and shipping them to you when you need them most.
8. Order 1040/1040NR forms, publications, instructions
from IRS web site and carry them to India. You may need them for reference or to discuss with your CA/FP in
India.
9. If you have a scanner and CD burner, have important
docs, scanned and copied in the CD-R.
10. If you need to encash savings bonds, do them before
you leave. Carry the certificates safely with you. Send a photocopy of the bonds with your shipping.
11. Carry atleast last 3 years of ( if you can all ) IRS
filing and other attachments sent. If there is dispute, you may need them for reference.
12. Request to
Freeze your credit and request credit alert. If there is any
credit request in your account, the creditor has to call you to
verify before authorization. Also check your credit history
regularly. With
http://www.annualcreditreport.com, you can get free credit
report from all three agencies once in a year free of cost. If
you schedule it properly, you can get a free credit report once
in 4 months, without paying anything.
Serious
paranoids can opt for credit monitoring service that may cost
about $10 per month.
In India:
1. Inform your bank about your return. Convert NRE
account to NRO account. Reduce the balance. It is taxable now. ( even in RNOR)
2. Open a liquid account (it is like MMF) with some
big mutual fund company and move your NRE balance there.
3. Continue your FCNR until maturity. As each deposit
matures, roll them into RFC fixed deposits.
4. Remember Indian fiscal year is April to March. Find
out how to file returns and seek a local CA/FP help for the first year, if you need.
5. Always write checks in Indian Ruppees for others.
Write $ checks only for deposit in your account. This will be a security for your account also will help in
balancing your Indian account and US Accounts.
6. Keep low profile. You dont need to advertize to every
one that you are returned NRI and has left wealth behind. With kidnapping increasing everyday for ransom, your
kids are in danger.
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