Should I invest in Amazon 401K
I am a new grad who started working at Amazon. I plan to leave Amazon in one year, should I invest in 401K knowing that Amazon vests its matching amount only after three years? Instead should I not invest the same money directly in ETF? What are the pros and cons of investing in 401K in this case? #tech #401k #investment #stock #finance #amazon
Invest in 401k. You will get tax benefits immediately. Not sure why you think you need to wait till 591/2 years for tax benefit. Since you are planning to leave Amazon in 1 year, Amazon’s contribution to 401k will NOT vest.
Early withdrawal penalty if you withdraw funds before you’re 59 1/2, you could end up paying more taxes on those funds. If you know for a fact you’re going to withdraw funds early, paying into a 401k might not make sense.
Yes this is what I was thinking but was not sure if there's any pros to it
Yeah the match is just the cherry on top. The real cream is the tax benifits.
I will get this tax benefit only when I reach 59 1/2 and withdraw my money. What If I know I will be staying here in the US max 10 years.
Then don't do 401K cause you'll get an early withdrawal penalty. Only do it if there is matching so you're still good after the penalty.