my employer is matching 4.5% on 401k but I am planning to go back to India mostly in 10 years, should I still put money in 401K ?
Put every penny your employer matches. You will come ahead even if you do early withdrawal and pay penalty.
sure will do that Thank you !
In 10 years = never. So put your money in 401k.
You are not going back. Mark my words. You will btch and moan but you won’t
May be! I have asked question considering worst that can happen
Why going back to the motherland can be the worst?
You can always get the money after you retire, even if you retire in India. You don't need to be employed here. Ultimately, as long as you believe in the strength of the US makers and the dollar this is a no-brainer.
Actually there is a 1.5 year window where he can take it back and not pay taxes in India. Otherwise, you pay taxes outside that window
But, assuming you can afford it, is there a benefit to this than buying a low cost fund and letting the money compound over time? I did not realize you have to pay taxes if you use the money past retirement age.
If you leave a company you can later roll that 401k into an IRA through like any financial company or Financial Advisor. So absolutely. Thats 4.5% of your TC @ 10 years, plus non-taxable gains and tax savings on your lower income.
Yes, and you can take it with you! Or leave it invested to grow. Either way, you are forcing yourself to save money for later, which is good!
I would contribute and take the match. Then when I moved back, roll it over into an ira/roth ira (depending on tax benefits) leave it here and let it do its thing.
Yes, at least get the match