I’m on F1 visa and in my mid 20s. I’m planning to max out my 401k. I’m unsure of my future plans in the US.
Investing in 401k ( saving on 24% slab and California taxes ) or Roth 401k ( tax free gains ).
The Roth conversion ladder concept looks good if I move back to my home country or FIRE
What do you think is better ? Any suggestions?
#investments #401k #nvidia #nvidiasalary
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comments
Roth/traditional limit is ~19.5k. the others don't have an individual limit, but overall limit is ~54k.
That’s kinda a gimmie for your scenario.
People paying into Roth 401k typically are betting that the taxes they are paying now, even when accounting for their retirement tax situation, will be less that the future (usually because they are betting that taxes will rise by the time they retire).
At the end of the day, nobody can foresee the future, and you really can't go wrong with either decision.
Source: https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts#8designated