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How is roth ira taxed

how is roth ira taxed

Are distributions from Roth 401k or Roth IRA accounts taxed in India?

I am wondering if India distinguishes between pre-tax and roth IRA/401k accounts.

So, if I am contributing to a roth account (401k and/or IRA) - would I have to pay taxes in India again:

  1. On the principal and earnings
  2. Just the earnings
  3. Neither.
  4. If neither, would this still count as taxable income in India (potentially putting me at a higher tax bracket even if I am not directly paying taxes on this amount)?

Assumption. The person is an Indian citizen and was working in the US on F1/H1b/Green card (maybe even some combination of all three). He them moved to India where the withdrawal and/or distribution took place.

Existing Knowledge


According to Article 20 of the Double Tax Treaty Agreement, any private pensions would be taxed in India only. This clearly means that my pre-tax IRA distributions and withdrawals will be taxed in India. The question is if this applies to Roth accounts as well?

According to this website. If NRI return to India with the intention of permanently residing in India, the assets brought by him will be exempt. Also, the money and the assets acquired from the money, brought by NRI within one year after his return, will be exempt. This exemption is available to NRI for a period of seven years after his return to India. [Sec. 5(1)(v)]

Would this affect the roth account (assuming a distribution took place after more than 7 years of return)?

Category: Taxes

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