Australia to California relocation & taxes
Hi all, considering relocating to California can somebody help me understand how much net salary will I have after all contribution? I want to put 4% in 401 k and I might be earning a TC of about 220k, I am single with no deductions..is it 50%? Or more like 60%?
Dont come here. 50% tax. Companies are paying way less to people who are relocating here as they dont know the scene here. But from the other side u will think that that too much money. I make 170k base. I get 5.9k in hand in a month. Do math.
Yeah but the real wealth comes from RSU's. I make your base but make 2x more from my RSU's which are essentially my retirement savings. Can't make that back in Aussie. Unless things have changed since I left? đ¤
Yes u r smart. But in the end 700k tc and then pay 350k tax on that and then buy 2bedroom condo in sf for 1.5 M. For outsider, they just see big fat base and grt attracted towards that and then realize that they were happy at previous place :)
My only advice is you want to max out your 401k. As for taxes, there are some online federal and state tax calculators, that's what I used and it was pretty accurate.
Thanks. Do u happen to know if I can take 401k out at a better tax rate once I move back to AU?
You'll only be charged the 10% penalty as long as you withdraw it at or below the tax free threshold. Since your employer is probably matching 50%, combined with compounding over a few years (you should leave it as long as you can) you'll be miles ahead.