best 401k option?

New
daybanana

New

PRE
Amazon
daybananamore
Sep 15 17 Comments

hi !

some might laugh but i am new grad(masters). worked 2yrs at Singapore but 0yr at US.

My company will match 4%.
and my TC is base 140, fixed bonus 50.

how much should i max out for 401? should i do 4% of my base or 190*0.04?

any advice and additional info will be appreciated!

Is 401k worth it?

edit
nyc
just realized they do 50% match. so technically 2%..

comments

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TOP 17 Comments
  • Taylor Farms azerty_
    401k isn’t socialist crap. Quite the opposite. It’s capitalistic crap. As long as you are getting a match from the employer - that’s free money. Even if you pull out earlier and pay tax+ fee, you will be still ahead. Don’t listen to microsoft. Do the 401k as long as there is a match
    Sep 15 1
    • Intel / Finance LC_ups_TC
      Couldn't agree more
      Sep 15
  • Microsoft
    e8@fang

    Microsoft

    PRE
    Taco Bell, Campbell Soup, Jack in the Box
    e8@fangmore
    Nah man 401k is some socialist crap. Just spend all your tc today. Yolo
    Sep 15 6
    • Goldman Sachs kach1947
      I know of at least 4 people in my current and previous orgs who have never contributed to their 401k. One of them was actually with the previous org (also fortune 50)for around 14 years when I left, and he told me he has never considered it and never will (he did use the term socialism, to match with what e8@fang says above). To each, their own.

      EDIT: in your case, yes, please max out your contribution. Make sure you update it each year by checking what the yearly IRS limits are. Irrespective of howver long you plan to live in the US, you can either cash it out fully (with minimum 30% tax penalty) or you can take a loan out of your 401k (and pay yourself interest).
      Sep 15
    • Microsoft
      e8@fang

      Microsoft

      PRE
      Taco Bell, Campbell Soup, Jack in the Box
      e8@fangmore
      Of Course a bank would pitch 401k!!!! Go peddle your wares elsewhere goldman!!
      Sep 15
    • Goldman Sachs kach1947
      Lol
      Sep 15
    • New
      daybanana

      New

      PRE
      Amazon
      daybananamore
      OP
      Thanks a lot!

      Does the penalty means

      If i cash out all, am i paying 30% of total invested amount+interest that has been increased?
      Sep 15
    • Goldman Sachs kach1947
      Actually, it would be closer to 40% (federal + state + 10% early withdrawal) penalty.

      Many articles out there on this topic, one of which is here :

      https://www.fidelity.com/viewpoints/retirement/cashing-out
      Sep 15
  • Workday FVxR04
    Do they match 4% of your base or your total TC? I would put in at least as much as they match. Free money
    Sep 15 1
    • New
      daybanana

      New

      PRE
      Amazon
      daybananamore
      OP
      So do you recommend to pay just same amount as their max matching? Not the max?(19000)
      Sep 15
  • Roku cruella
    Seriously max out ur 401k if u plan to stay in US at least 10 years.

    When I put $X in 401k my pay check is only reduced by $X/2.
    Sep 15 0
  • Rakuten / Ops
    tooQ10

    Rakuten Ops

    PRE
    Rakuten USA
    BIO
    Obligatory: YoE 20, TC 41k. Such is life for us non-SWE office monkeys!
    tooQ10more
    Why would anyone laugh? You're making great money and also have the opportunity to get a subsidy on your retirement savings. You're ahead of the game at such a young age.
    Sep 15 0
  • Walmart QTFP86
    If you are younger then you should max out 401K, that means put up ~19K from your pocket for this year. That will control your spending habits but will give you long term relief when 10yrs down the line you will need a capital to accommodate your more family oriented needs like house and other things... remember you can always loan yourself from your 401K fund at zero cost...
    Sep 15 0
  • Amazon / Eng
    ayylmaodog

    Amazon Eng

    PRE
    IBM
    ayylmaodogmore
    I max out my 401k but you're leaving money on the table of you dont at least take advantage if the entire company match
    Sep 15 0
  • Aetna / Data banana 🍌
    Max it out, contribute up to IRS annual limit
    Sep 15 0
  • Intel / Finance LC_ups_TC
    Max 401k out, you need to focus on investing anyway.
    Sep 15 0