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What to do with IRA after leaving the U.S. permanently?

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  • What to do with IRA after leaving the U.S. permanently?

    Hi, I have been working in the US for the last year and have some funds in my IRA account. I called various banks (Fidelity, Charles Schwab, Vanguard)--and they all don't allow residents of my home country to hold U.S. IRAs so I would need to cash out. Anyone know of any banks that would allow non-resident aliens to keep their IRAs?

    If not, I think my options are the following:

    a) Don't change my address with my bank (using my friend's address), so the bank won't trigger the overseas address change, and try to close my IRA.

    b) Try to cash out right now--but I will be subject to 10% tax penalty for early withdrawal, and 30% withholding (which I assume I can claim a refund on, since my tax bracket is lower).

    I would however, ideally, go with option (a), and either (i) wait a year or two, till I am not making any U.S. income that calendar year, in order to cash out at a lower tax bracket, or (ii), come back to the U.S. for my Masters, and use my IRA to pay for my tuition costs, without any 10% tax penalty.

    Any advice on these plans?

    Really regret putting so much money in my IRA now. Sigh..