I’m currently a resident alien and have both Traditional and Roth 401(k) accounts. I’m considering whether it would make sense to convert them to IRAs before potentially becoming a non-resident alien in the future. I’ve seen some guidance suggesting a 30% tax, but it’s unclear whether this applies to principal, earnings, or both. This seems higher than the tax rate if I invest directly through a brokerage account, so I’m a bit confused.
Given that in the future—e.g., 1–2 years—I might be an NRA, specifically, I’d like advice on:
1. Should I continue contributing to my 401(k)? If so, should it be Traditional or Roth?
2. If not, when would be the best time to transfer my existing 401(k)s to an IRA? Should I transfer to a Roth IRA, or just move the Traditional 401(k) to a Traditional IRA?
