For a visa holder, is it wise to store money in 401k?

Google YviI71
Sep 6 18 Comments

There is little chance that Iโ€™ll retire in the States. Maybe the best way is just contributing 0 to 401k?

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TOP 18 Comments
  • Uber / Eng rqDs70
    At Google it's a no brainier, max out pre-tax, and if you leave, depending on your situation either keep for retirement or just take all the money out just before leaving, the penalty will be less than Google match
    Sep 7 9
    • Around 30% including taxes
      Sep 7
    • Google / Mgmt hoooli.xyz
      Penalty is 10%, but you have to pay tax on your withdrawal. If you do that, it comes close to 30-40%
      Sep 7
    • Uber / Eng rqDs70
      If you don't contribute you pay tax as well, so really there is just a 10% penalty vs the 50% match. As I said, no brainier (even if you take it out right away)
      Sep 7
    • Google / Mgmt hoooli.xyz
      Right - good point. Actually better if you take it out in 2-3 year window. Your tax rate will be lower too, since you have no other earnings in US that year.
      Sep 7
    • Uber / Eng rqDs70
      That depends on your country, but regardless you should invest in 401k and take it either right before leaving or later depending on what make more sense
      Sep 7
  • If you get a match, then yes. You can still withdraw the money in retirement from your home country. If you don't get a match, meh.
    Sep 6 1
    • Apple switchitup
      Perfect answer,
      I would also like to add that you can take 401k in installments after you retire in your home country.
      As long as the amount you take out periodically is small enough, and the fact that you are a senior citizen with very low tax bracket, youโ€™ll have very little taxation.

      So, max out your match at least.
      Sep 7
  • Google book.page
    Noogler?
    Sep 7 5