401k vs roth 401k

Clearlink / IT
qouxb

Go to company page Clearlink IT

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Clearlink
 qouxb
Nov 8, 2019 18 Comments

I am starting a new job and I was wondering how much I should invest in 401k/roth 401k.

Also which one is the best to invest in?

I am on a H1 visa right now. If I had to leave the country how can I remove the money from my account without paying penalty & Taxes (401k)?

please advice.

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  • New
    ralexander

    New

    ralexander
    If you are going to be making over $100k a year I recommend the 401k, if below set up a Roth. However you will always be penalized so instead maybe look to do a IRA. I use Vanguard
    Nov 8, 2019 4
  • Roku
    de Vil

    Go to company page Roku

    de Vil
    Does your employer match your 401k contributions?
    Nov 8, 2019 2
  • You can’t remove it without penalty, but that’s true whether you’re on H1 or not. That is the whole point of 401ks. But it’s only ~10% so not the end of the world. If you have company match, that’s already 100% return if you put in just enough to get the maximum match
    Nov 8, 2019 2
  • One alternative is to use 401k Roth IRA and open up your personal Roth IRA. When you are moving from your company, roll that 401k Roth to your personal Roth IRA.

    After 5 years since opening the account, you can take out your principal from your personal Roth IRA without any penalty.

    Talk to your financial advisor to discuss your personal situations.
    Nov 8, 2019 0
  • Myself I had regular 401k for years. In last 2 jobs I was offered Roth and I took it. Since I cannot predict future, at least this should limit my losses if any. Better than been all wrong.
    Nov 8, 2019 0