NRI Returning after layoff, need a plan check and advise
I'm trying to get some advise on returning to India and FIRE in general. Was thinking and planning to return to India in June 2027 and either calling it quits with IT in general or working on something on my own time but got laid off last week and that changes/accelerates my plans, don't have it in me to go through the visa and interview cycles. I could use some advice if the plan that I have works or I have some blind spots that need to be addressed.
Been in the US since 2014, 40 year olds, family of 4 with 2 kids aged 2 and 7, savings outline below.
- Total NW - ~$900k (Does not include home equity and severance)
- Cash - $100k
- Taxable investments - $176k
- Roth IRA - $90k
- Vested RSU - $250k
- 401k - $260k
- Expecting severance around $70k
- Home Equity ~50k
Plan
- Return to India in Aug/Sept 2026 as termination date is in July 2026
- Before returning
- Sell house
- Get apostile documents for both kids
- Open IKBR LLC account
- Move cash to NRE/NRO account to setup in India
- After returning
- Sell Roth IRA during RNOR period to save capital gains taxes in both India and US then invest it in India
- Move taxable investments to IKBR then buy irish domiciled funds
- Sell Vested RSU in RNOR period and either buy more irish funds or invest in India
- Move 401k to IRA with Fidelity and file 10EE in India
- Does using 72(t) after moving to drain 401k make more sense? I am worried about the 30% tax from uncle sam as an NRA
I have tried finding someone that has done the IKBR and irish funds setup but haven't been able to get any concrete mechanics on how it works or what are some pitfalls to watch out for but following are my questions.
- With an expected monthly expense in a tier 2 city around 1.5L can we navigate this portfolio to retire?
- We are from close to this city originally and have stayed there in our last 2 visits to India to get an idea of expenses
- I plan to keep aside 1Cr for each of the kids higher eduction either in India/USA, I'd prefer to keep it in USD but most likely IKBR to avoid estate tax however when kids need it I'll be paying taxes in India so need some guidance here.
- To avoid falling into a tax trap do I work with a consultant that handles NRI situations like this? If so, any recommendations and advise on what to look out for?
- I've calculated my retirement number to be monthly expense*33+cost of house(1 Cr)+Kids Education(2 Cr) which comes to around ~9Cr. Is this too simplistic a calculation?