Yes
Can you please explain the advantages and what's the catch if we want to withdraw early on before retirement?
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Please use Google. So much information out there
Not as a long-term tax-saving strategy unless you put some or all of it in Roth.
Yes
If you need to withdraw from 401k early, I assume you probably don’t have much income from else where that year. If the tax difference is greater 10% from now, then it makes sense. Plus there might be company matching/tax deferred growth.
Reason I asked about withdrawing early is because I am not sure of retiring in the US or my home country. I might as well clear off everything here if I plan to go back.
Do you have retirement savings in your home country? May be that can help you decide if you want to clear everything out when you leave. Even if you decide to do it, you should rather take in smaller chunks that would keep you in the lowest bracket and repeat every year
Yes. “Good idea” is the following in order: 1. Max company match to 401K. 2. Max out Roth IRA (or if over limit traditional IRA and do the Backdoor Roth.) 3. Max out 401K either traditional or Roth depending on cash flow needs. 4. If you can afford to max 401K Roth do that. Beyond that, have fun.
Any reason why you ranked 2 over 3? I don’t see a clear advantage of one over the other. Seems like Roth 401k is roughly the same as Roth IRA, tax-wise.
IRA is much more flexible on timing of withdrawals than 401K, for major events like home purchase, education, or medical care.
Generally, yes if you are ready. You need to take care of the following first: - paying for living expenses - paying off any non- mortgage debt - buy a home vs renting - max Roth IRA If you have money left after the doing the above, then you are in good shape to Max 401k
Thank you for all your inputs
Yes
Yes
It's not always best. Depends on matching, your current financial situation and what you need financially now, mid, future time.