401k on work visa

NVIDIA
wfh2021

Go to company page NVIDIA

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NVIDIA
wfh2021
Jun 9, 2020 5 Comments

I have been in US for about 5 years now. Currently, I invest the minimum amiunt required for getting the company match to my 401K.
I have plans of moving out in 4 years. This particular time frame is for my spouse and me to achieve some personal goals before we move.

How should I deal with my 401k when the time comes?
I have read that, IRA is a more flexible account than 401K. Do people suggest moving money to IRA from 401k?

Also, what if I dont want to pay penalty of withdrawal, and continue to keep my account here till I retire. Is there any anticipated risk in doing so?

PS: I have plans to get an opinion from a professional consultant soon. I am here just for some background research.

TC : 180K

#personalfinance #investments

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TOP 5 Comments
  • If you move back to your home country, you can start withdrawing starting the year after in chunks of say 10k. You pay minimum taxes (assuming your contribution is pre-tax). Penalties, if I understand correctly, will be paid regardless unless you turn 59 before withdrawing.
    Jun 9, 2020 1
    • NVIDIA
      wfh2021

      Go to company page NVIDIA

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      NVIDIA
      wfh2021
      OP
      Yes. So, what if I withdraw after I am 59? What kind of issues should I consider while keeping a 401k or IRA account alive while not living in the country?
      Jun 9, 2020
  • Google
    blimey$

    Go to company page Google

    blimey$
    There’s a certain minimum you can withdraw without paying the penalty
    Jun 9, 2020 1
  • Cisco / Eng
    Jsonf

    Go to company page Cisco Eng

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    500 Startups
    Jsonf
    Do we have to pay any penalty to move from 401k to traditional ira?
    Jun 9, 2020 0