Will you contribute to 401k of there is no employer match?
My current company matches 6k per year for 401k. I having been contributing 6k per year to get the employer match. The new company I am going to join doesn't have an employer match. Should I keep contributing? I am in H1b visa so not sure if am going to retiring in the US. I am wondering if it's better to invest in brokerage account instead of 401k going forward. I already contribute 5.5k in Roth IRA ( via backdoor).
Max your IRA, then contribute to your 401k. It lowers your tax burden. If you end up retiring in the US, great! If not, still great! Either way you’ve saved up a ton of money.
Only if you manage to live enough years after age of 65...
Max out your 401k if you intend to leave the US at some point in time
Irrespective of whether you stay in the US or not it is ideal to max out 401k because the money that goes into it is not taxable which means you get 30% profit (assuming your overall tax to be 30). Also the time to save for future is now as private jobs don't provide you pension post retirement.
But that locks up money too and eventually you hv to take it out. So if u wanna stay in usa its fine but its not good if u dont wanna stay
If you live in a country with a tax treaty with the US the 401k may continue to be tax advantaged even after you leave the US.
also are you in CA? can you withdraw early citing residence in state-tax free state like WA or TX at the time of withdrawal to dodge the state tax?
Of course. As long as you really are a resident of said state.
If there is no match, the only benefit is tax-free growth.
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Yup
If you are NRI, I saw an ad for NRI savings account promising good rate of return.
I used to put money in my NRI FD when the exchange rate was 54. Lost lot of money because of conversion rate. I don't want to save in Indian banks because of this reason. I would like to settle here, but I i can't be sure because of immigration uncertainties.
Yeah but the rate is in Indian Rupees so you’re taking on a lot of Forex risk.
You should regardless
I’m not sure of anything related to visa, so this advice ignores that. Otherwise if no match, I’d first max out an IRA. You get a lot more flexibility in what/how you invest with an IRA. I’d personally go Roth IRA, but you need to look at your tax situation and consider that you may not retire here to factor that in.
I already contribute to roth ira