Question 1

Can H1B workers collect Social Security from India?

Accepted Answer

Yes. If you have earned 40 credits (roughly 10 years of US work), you qualify for Social Security retirement benefits starting at age 62. No citizenship or green card is required. You can receive payments while living in India, though you need to maintain a US bank account as India is not on the SSA international direct deposit list.

Question 2

What is the estate tax exemption for non-US citizens with a 401k?

Accepted Answer

Non-US citizens get only a $60,000 estate tax exemption, compared to over $13 million for US citizens. Everything above $60,000 in US assets including 401k, IRA, and brokerage accounts is taxed at 40%. For example, a $500,000 401k could result in $176,000 in estate taxes for your heirs.

Question 3

Is there a US-India Social Security totalization agreement?

Accepted Answer

No. Unlike 30 other countries including Canada, UK, and Germany, India has no totalization agreement with the US. You cannot combine Indian work years with US Social Security credits. You need the full 40 US credits to qualify for benefits.

Question 4

What happens to my 401k when I move back to India?

Accepted Answer

Your 401k does not disappear when you leave the US. It stays invested and continues to grow. You have three main options: leave it in the US, roll it over to an IRA, or withdraw it. Each has different tax consequences. Non-citizens should be aware of the $60,000 estate tax exemption which makes leaving large balances in the US potentially risky long-term.

Question 5

What is RNOR status and why does it matter for returning NRIs?

Accepted Answer

RNOR stands for Resident but Not Ordinarily Resident. It is an Indian tax classification that applies for roughly 2-3 years after returning to India. During this window, foreign income including US Social Security payments, 401k withdrawals, and Roth conversions is generally not taxable in India if the money stays outside the country. This creates a valuable tax planning opportunity for returning NRIs.

Question 6

Do I need a US bank account after moving to India?

Accepted Answer

Yes. India is not on the Social Security Administration international direct deposit list, so you need a US bank account to receive Social Security payments. You also need it for 401k distributions, brokerage dividends, and tax refunds. Keep your US bank account active before you leave as it is much harder to open one remotely.

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