401k

Adobe
GoooJ

Go to company page Adobe

GoooJ
Mar 21, 2018 28 Comments

Is it still a good idea to max out 401k while you know you are not going to stay in the US for more than 10 years? Given that the company has a matching policy.

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 TOP 28 Comments
  • Google / Eng
    sergey

    Go to company page Google Eng

    BIO
    Haha
     sergey
    Short answer: Yes.
    Long answer: Fucking yes.
    Mar 21, 2018 0
  • Yes it is still a great idea, what are your concerns in leaving free
    Mar 21, 2018 8
    • Amazon
      TheRanter

      Go to company page Amazon

      TheRanter
      Dude you can avoid all the taxes.
      Mar 21, 2018
    • Uber
      vertina

      Go to company page Uber

      vertina
      For the same investment, if your company matches more than 10% you win, regardless if you avoid the tax or not.
      Also leaving in 10y don't mean you need to take the money out, you can keep it longer if you don't need the money immediately
      Mar 21, 2018
  • Oracle
    browniebit

    Go to company page Oracle

    browniebit
    yes, you need to account that year you leave US your income will not be youri total compensation, suppose u leave after serving 3 mons tat year your taxable income will be ur sal for 3 mons. you can withdraw a portion of 401k without being taxed.
    Mar 21, 2018 4
  • Workday / Eng
    @hulk

    Go to company page Workday Eng

    PRE
    Workday
     @hulk
    Yes, absolutely yes.
    Start contributing even if your employee doesn't contribute. It's gonna be free money (if you get employer contribution in the future)

    When you move to your country, convert 401k to IRA, and move 30k from entire corpus every year (or amount with lowest tax bracket) to Roth IRA. Let it grow in Roth. Every 5 years withdraw from Roth. Guarantees less penalty.
    Caveat: you may have to pay tax in your coubtry depending on your non resident status.

    By contributing to 401k, you are saving x% of your Y contribution. So if you are making out 19k, assuming 30% tax bracket, its like $5700 every year, its an indirect return of 30%, right.

    Additionally put max out Roth 401k or IRA whenever possible. Hope this helps.
    Jun 5, 2019 0
  • Hulu
    ywPn24

    Go to company page Hulu

    ywPn24
    Are you going to withdraw all your money once you leave? Some 401Ks will keep it active even if you are not in the US.
    Mar 21, 2018 0