Is it still a good idea to max out 401k while you know you are not going to stay in the US for more than 10 years? Given that the company has a matching policy.
Yes it is still a great idea, what are your concerns in leaving free
My concern is that the penalization for the early withdrawal of 401k money may not be worth the company’s matching contribution. I should mention that I have no idea if what I am concerned about is meaningful and hence the question.
The penalty is 10% dude. How crappy must your company match be for you to lose money in this situation?
I'm in the same boat, I have my doubts as well. I'm maxing out my employer matching, which I think is worth it, but I don't think contributing the max to 401k is worth it considering I probably won't spend more than 5 years here.
Following...
Short answer: Yes. Long answer: Fucking yes.
yes, you need to account that year you leave US your income will not be youri total compensation, suppose u leave after serving 3 mons tat year your taxable income will be ur sal for 3 mons. you can withdraw a portion of 401k without being taxed.
You can not take money out of a 401k without being taxed, except maybe a back door Roth IRA rollover.
With FBAR and FATCA all global income will have to be revealed and taxed too by the next country where you file your taxes. It’s all coming together now so tread with caution
Are you going to withdraw all your money once you leave? Some 401Ks will keep it active even if you are not in the US.
You can use it as retirement money in any country you live
Wherever you file taxes outside US, it will have to be revealed is what I meant. Taxation is determined based on individual profile. Again this is if you strictly follow the rules
Same doubt but my company is matching 50% doesn’t want to loose free money there