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?
just realized they do 50% match. so technically 2%..
- 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
- Nah man 401k is some socialist crap. Just spend all your tc today. Yolo
- 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).
- 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 :
- Workday FVxR04Do they match 4% of your base or your total TC? I would put in at least as much as they match. Free money
- Walmart QTFP86If 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...