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Taxes / 457(b) account upon retirement
« on: February 10, 2021, 09:23:25 AM »
We are US citizens planning to relocate to India in a few months. My wife works for the state government and has ~$100K in her deferred comp 457(b) account. The account offers only one Vanguard MF namely VPMAX, which has an expense ratio of 0.31%. My plan is to move that money into her Vanguard's traditional IRA and just put it in VTI.

My question is

1. Can I move 457(b) --> Trad IRA rollover
2. Is that a smart thing to do w.r.t tax implications for now & future?

Upon retirement I plan on slowly converting Trad IRA to ROTH IRA since our income would reduce.


I am a very big fan of the blog. Learnt a lot from reading GCC's articles. Really appreciate the time and effort put into writing each article.

We plan on moving from New York to India (Bangalore) permanently in the next 18 months hopefully with partial FIRE. I have the usual accounts many in this community have, like vanguard brokerage & IRA accounts. I also have my work 401k at Fido. I plan to open a virtual mailbox like traveling mailbox (TM) in 0% state like Florida or WA before I move to India. My only relative is in Maryland and was thinking of giving his address in case some financial institution flags TM?s address and ask for a proper residential address. I wasn?t planning on legally establishing residency in any other state.
 I had three questions.

1.   When I move to India, for taxation purposes (I?ll still get dividends from vanguard), which state would I pay taxes; NY, MD or FL?
2.   I know just having a virtual mailbox at 0% state tax state like Florida doesn?t guarantee residency. So in order to get the tax benefits of FL, should I legally establish residency at FL? ? This is not my preferred choice, but the tax benefits could force me to take this route.
3.   If I don?t legally change my residency from NY and open a TM address based in NY, but give my relative?s address in MD as an emergency residential address, will I pay NY state taxes? - This is my preferred choice since this involves least work from my side. :)

Any advise on the best strategy for my situation would immensely help.

Expert help from this community is greatly appreciated.

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