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How will India tax my US 401(k) or IRA withdrawals after I become an Indian resident again?

Once you're a resident (and eventually 'resident and ordinarily resident') under Indian law, India taxes your worldwide income, which includes distributions from US retirement accounts. So a 401(k) or IRA withdrawal taxed in the US can also be taxable in India. The US-India tax treaty and the foreign tax credit mechanism are meant to prevent full double taxation: you typically pay US tax first (US withholds on distributions to nonresidents) and then claim a credit in India for that US tax against your Indian liability, or vice versa depending on sourcing. The interaction is genuinely complex, especially for Roth accounts, which India may not treat as tax-free the way the US does. Engage a cross-border advisor before drawing down, and consider timing withdrawals to your lowest combined-rate years.

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