I move from Amazon India to US on an internal transfer a year back. I am planning to stay for only 2-3 more years for family reasons. While trying to figure out investment options for US resident Indians I find very few options. How does people invest in India/US, specially folks who plan to stay for very limited time in US? Is 401k worth investing into? Are there any better options? TC: 180K YOE: 7 #401k #stock #rsu #bitcoin #investment #nri
Invest to the match then invest in a normal account.
Don't you delay taxes even company doesn't match. When you withdraw it will fall into low incometax bracket with 10% penalty
You don't delay taxes, you lower your agi (the amount you are taxed on). Depending on their tax situation this may or may not be a big deal.
Google RNOR rules
He s ineligible due to Length of stay
Why do you need to withdraw early? 3 years max will give you 60k + 10/15k more depending on match. Just put them in s&p 500 and let those funds bake for 20-30 years. 10 years before retirement - start moving stocks slowly to bonds. You’ll get your few hundred thousands as nice additional income during retirement.
You can leave the country and then withdraw 401k at the withdrawal age.Dont Miss our evening a single year of contributions through.Its the best tax relief vehicle.
Absolutely. You’re probably never going back.
Does Amazon still have a three year vest? You might want to take this into consideration.
Google for Roth ladder strategy. You can avoid the 10% penalty while doing a premature 401k withdrawal. If you pass the RNOR test u can bring in overseas income for up to 3 years into India. On the other hand US will tax you as nonresident alien which means the taxes on withdrawal is more n there is no applicable standard deduction (~24k) n personal exemption (4K).
On the flip side if ur tax bracket is on the low side I’d suggest just have that money invested in an NRE account. Get 6% on fd which is tax free in India. But u may have to report taxes in US. Do this as long as u fall into lower tax category. If higher tax, then go for 401k and the penalty n the additional income tax u pay should definitely make u come ahead as long as u plan ur exit to India when ur taxable earned income is very low. Typically they recommend to exit by November or December n plan to withdraw ur 401k the subsequent year do that u owe no state taxes n ur earned income is also 0
With company matching it’s worth to max out your 401k. Even you’ll get 10% penalty for early withdrawal, it’s still profitable.
Without company matching not it’s not.
Don't you delay taxes even company doesn't match. When you withdraw it will fall into low incometax bracket with 10% penalty