Relocating abroad - need advise on how best to handle investments and property

I am long time reader of this wonderful blog/forums but posting for the 1st time. I am currently on H1b and have a long wait for GC. My employer has office abroad and is offering me an opportunity to relocate and work in abroad for sometime. I have been here for a long time so have small nest egg and also own a home. I am hoping there are folks on this forum who may have go thru this process and can share their experiences. Questions: When you relocate abroad with plans to return:

(a) What did you do with your 401k, investments etc., ? Is it ok to remain invested in US if you are no longer in US and working for USA employer?
(b) What about your home? Is it a must to sell property or is one allowed to own a home in US and rent it out if one does not live and work in US anymore?

(a) If you ever have a plan of coming back to USA and you do not have Urgent need to that money, convert it into IRA (With Low Fees, like Vanguard etc.,) and let it stay here until atleast you turn 59.5. Benefit is two fold, you wont pay taxes and penalty and you get to gain the US Markets profit until you reach Retirement age.

(b). If the house is Rentable, and the Rent covers 125% of the monthly payment you can hand it over to a good Rental Management Company. They will take care and you can set up ACH Instructions for monthly payments, good handyman for repairs and Home Warranty as well. If you own the house it is even better. There is no rule that you cannot own a house if you don't live here. Have a good contact with couple of Handyman's and Local Real Estate Agents whom you trust. In the worst case, you have to sell it they will come in handy than searching for someone at that time.

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Originally Posted by GCMirage

I am long time reader of this wonderful blog/forums but posting for the 1st time. I am currently on H1b and have a long wait for GC. My employer has office abroad and is offering me an opportunity to relocate and work in abroad for sometime. I have been here for a long time so have small nest egg and also own a home. I am hoping there are folks on this forum who may have go thru this process and can share their experiences. Questions: When you relocate abroad with plans to return:

(a) What did you do with your 401k, investments etc., ? Is it ok to remain invested in US if you are no longer in US and working for USA employer?
(b) What about your home? Is it a must to sell property or is one allowed to own a home in US and rent it out if one does not live and work in US anymore?

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Both answers above are correct. My own personal choice about house would be to sell it off. Managing a house in US from Canada might be doable .. not from India. Especially when you don't have GC. Good luck with the move. I actually this might be one of the best things that could happen to you both from life and career perspective.

Thanks Q and swngl_10262010 for your responsea, appreciate it. A follow up question pertaining to (b)

I am will be working from Europe (not from India or Canada) for 1.5y to 2 years max (going on an assignment). The plan is to return to US. The question that is bothering me and I have not been able to find much material is

Does holding real estate (physical asset) in US - in anyway complicate my immigration matters i.e., my ability to get H/L1 visa or GC or citizenship?

I have posted this to my immigration attorney but they have not responded yet...

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Originally Posted by GCMirage

I am long time reader of this wonderful blog/forums but posting for the 1st time. I am currently on H1b and have a long wait for GC. My employer has office abroad and is offering me an opportunity to relocate and work in abroad for sometime. I have been here for a long time so have small nest egg and also own a home. I am hoping there are folks on this forum who may have go thru this process and can share their experiences. Questions: When you relocate abroad with plans to return:

(a) What did you do with your 401k, investments etc., ? Is it ok to remain invested in US if you are no longer in US and working for USA employer?
(b) What about your home? Is it a must to sell property or is one allowed to own a home in US and rent it out if one does not live and work in US anymore?

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a)As long as you are employed with the same employer, you should be able keep the 401K as is, manage it and even contribute to it. Your employer may not match contributions.

b)I would suggest rent it out. It will be a significant income. Ask a friend or relative to manage it. If not, there are property management companies that will do it for a small fee, usually about 10% the rent. It should still be profitable.

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Originally Posted by GCMirage

Thanks Q and swngl_10262010 for your responsea, appreciate it. A follow up question pertaining to (b)

I am will be working from Europe (not from India or Canada) for 1.5y to 2 years max (going on an assignment). The plan is to return to US. The question that is bothering me and I have not been able to find much material is

Does holding real estate (physical asset) in US - in anyway complicate my immigration matters i.e., my ability to get H/L1 visa or GC or citizenship?

I have posted this to my immigration attorney but they have not responded yet...

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Absolutely not. Anybody in the world can buy US property. Don't even need US visa.

If you are going on a short term assignment ... then don't need to sell the house. Renting would make good sense.

Closing the loop. Attorney confirmed that owning a property or investment has no bearing on the immigration matters as long as income taxes and tax filing are properly handled. Advised consulting and hiring a CPA to ensure proper tax filings are done for rental and investment income while abroad.

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Originally Posted by GCMirage

Closing the loop. Attorney confirmed that owning a property or investment has no bearing on the immigration matters as long as income taxes and tax filing are properly handled. Advised consulting and hiring a CPA to ensure proper tax filings are done for rental and investment income while abroad.

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If you are renting your house, I will strongly advise to buy umbrella policy with home insurance if you don't already have it and to check with your CPA about forming an LLC for renting your house and protecting your assets.

I had a preliminary discussion with CPA, but setting up a LLC did not come-up. Thanks for the suggestion it makes sense.