I’m Indian, and will likely leave the US in a fee years. Is it better to contribute to 401K or Roth? What should I consider? YOE: 5, TC 250K
Roth has income cutoffs.
And that's why they have backdoor Roth.
I’m confused. There’s traditional 401k AND Roth 401k. Company will also match for Roth 401k....
Company match always goes to trad 401k.
What’s the deciding factor then to use traditional 401k vs Roth 401k? I’ve always used Roth 401k but I’m younger and not recent grad young though
401k. Get company match. Save taxes in top bracket. Withdraw less than standard deduction every year after going to India. Pay just the 10% penalty
No. Do everything except last sentence about penalty. Open a Roth IRA today with 10$ and forgrt about it. When you leave, transfer from 401k to Roth IRA and pay standard taxes, and then withdraw from Roth IRA your contributions penalty free. (As long as Roth IRA is more than 5 yr old). For earnings, if you want to withdraw then pay penalty.
Can’t you simply let it grow in traditional 401k account and use it as a retirement fund later when you are 60? That way when you start working in India you do not have to worry much about saving in retirement funds there.