US SEP IRA After Moving to India
SEP IRA after India move: stop contributions, distribution tax, RNOR window, roll to traditional IRA options.
The 60-second version
SEP IRA stays US-taxable; India RNOR may exempt foreign retirement distributions briefly — coordinate IRS Form 1040 with Schedule FSI before ROR flip.
SEP is employer-linked — shutdown US entity before contributions stop
SEP IRA contributions require US self-employment income — India salary cannot fund new SEP deposits.
Distributions taxed in US; India tax depends on RNOR/ROR in distribution year.
Traditional IRA: IRA guide.
SEP decisions
| Action | US tax | India tax |
|---|---|---|
| Keep SEP | 1040 on distribution | RNOR analysis |
| Roll to IRA | Non-taxable roll | No India event |
| Withdraw | 10% penalty if <59.5 | ROR taxable |
| No new contrib | Required | N/A |
SEP wind-down
Stop contributions
US entity
Get FMV statement
Dec 31
Model distribution
RNOR year?
Roll or hold
IRA custodian
FSI + Form 67
If ROR overlap
Flow
SEP kit
- 5498.
- FMV.
- Plan doc.
- RNOR sheet.
- Custodian letter.
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ProRata rule
If mixing deductible and non-deductible IRA, Form 8606 required on any distribution.
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Turn this guide into a decision file
0 of 4 checked
Still contribute from India?
No — need US SE income.
DTAA Art 18?
Pension article may reduce Indian tax when ROR.
Schedule FA?
Report foreign retirement account balance.
59.5 rule?
US penalty unless exception.
Roth SEP?
Rare — usually traditional SEP.
Inherited SEP?
See inherited IRA guide.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.