401k Max out entha mandhi

[Konebhar6]

13 minutes ago, Satrajith said:

ante.. can I leave 401K and Roth IRA here with Fidelity and move to India? retirement age vachaaka can I withdraw automatically? naku elagoo.. kadilinche aalochana ledu. let it grow and take when retirement age? and retirement age ante mee uddesam 60 Years kada.. as per IRS

Yes you can leave it. Make sure you have a will or do an estate so that if anything uncertain happens, money will go to nominees easily. Else it goes to state.

[meandhrakurradu]

5 hours ago, Konebhar6 said:

If you move to India and are below retirement age, you can start taking smaller amounts out of it every year where you pay negligible tax plus there is a 10% early withdrawal penalty which should be OK considering the gains you have. 

If you move to india and get to retirement age, you can withdraw amounts, pay tax without penalty. 

Roth IRA is not recognized by India. If you retire in India, you need to pay tax again to Indian govt as it is considered income. Idi ekkado chadivanu, did not dig deep. 

[pandu123b]

na bongulo 401k, ee usa government start chesina pedda scam ide. nilivu dopidi.

max out chesi em peektar ra babu

company match varaku cheyandi, chalu

tax advantage ledu bokka ledu,

you will have free cash flow and do whatever you want including investing..

[rmJU72]

49 minutes ago, pandu123b said:

na bongulo 401k, ee usa government start chesina pedda scam ide. nilivu dopidi.

max out chesi em peektar ra babu

company match varaku cheyandi, chalu

tax advantage ledu bokka ledu,

you will have free cash flow and do whatever you want including investing..

You have pretax savings on up to 23k per year.

Many people don’t have too many avenues to save. Instead of randomly trying out different things and losing money, 401k is a time tested way to save for such people (myself incl).

Also 401k should not be the only savings you do. It’s like a fallback incase nothing else worked out.

[Konebhar6]

2 hours ago, meandhrakurradu said:

Roth IRA is not recognized by India. If you retire in India, you need to pay tax again to Indian govt as it is considered income. Idi ekkado chadivanu, did not dig deep. 

India and USA do not have double taxation law. Also the money you withdraw into your US account, and then send INR to India. How does India know to tax it? 

[Peddayana]

401k max out since last year

one of the easiest ways to build wealth with out much effort

max out chesthe the compounding will be amazing once you reach 400-500k 

assuming 10% growth, every year ok 40-50k with out doing anything at all and it even increases every year, antha kante em kavali man

so try to max out and reach that half a million mark

 

 

 

[Kalam_Youtheman]

13 hours ago, rmJU72 said:

I max out every year. In recent 4 years I maxed out after tax as well.

Can you explain how maximizing after-tax contributions can help reduce our tax bracket? I did some calculations yesterday for the remaining months and maxed out my contributions. I'm curious if there's another strategy to maximize contributions that could further lower my tax bracke if any bro.

[Kalam_Youtheman]

7 hours ago, Peddayana said:

401k max out since last year

one of the easiest ways to build wealth with out much effort

max out chesthe the compounding will be amazing once you reach 400-500k 

assuming 10% growth, every year ok 40-50k with out doing anything at all and it even increases every year, antha kante em kavali man

so try to max out and reach that half a million mark

 

 

 

good plan ... but aa 400-500k reach avvadaniki  500k/23k = years

[rmJU72]

Only pretax saves tax on that amount. After tax doesn’t reduce tax bracket. I convert after tax to Roth and save just as another way to save and invest.

[Kalam_Youtheman]

9 hours ago, Konebhar6 said:

India and USA do not have double taxation law. Also the money you withdraw into your US account, and then send INR to India. How does India know to tax it? 

India and the USA do have a double taxaktion law bro.(DTAA) to prevent double taxation of income earned in one country by a resident of the other country....only income earned or received in India is taxable
Also bank reports large tranx to the RBI...

[Kalam_Youtheman]

Just now, rmJU72 said:

Only pretax saves tax on that amount. After tax doesn’t reduce tax bracket. I convert after tax to Roth and save just as another way to save and invest.

ahh ok... adhe anukunna bro... paycheck 2 paycheck kaakunda avthe chaaalu..remainiing all investments

[Konebhar6]

1 hour ago, Kalam_Youtheman said:

India and the USA do have a double taxaktion law bro.(DTAA) to prevent double taxation of income earned in one country by a resident of the other country....only income earned or received in India is taxable
Also bank reports large tranx to the RBI...

Haha .. I said it in the reverse but I meant what you said. You only need to pay tax in one country. US requires (if money is moved here) to pay the difference in tax though. 

[Kalam_Youtheman]

1 hour ago, papampasivadu said:

1500 a month ki 7-8% annual compunding eskunte 14-15 yrs pattudhi half million avvadaniki.....akkada nunchi compounding oka range lo speed andukuntadhi

approx 14 yrs padthundhi bro to reach 500k

$23 first year ( 2024)  initially and continue to invest an  $23k every year with an annual compound interest rate  say oka  7% minimum  so balance of $500k  401k reach avvalnte approx 14 years.

year	balance	7% interest say
1  (2024)	$23,000	$0
2	$49,220	$3,220
3	$77,275	$5,055
4	$107,295	$7,019
5	$139,415	$9,121
6	$173,784	$11,369
7	$210,559	$13,775
8	$249,908	$16,349
9	$292,012	$19,104
10	$337,063	$22,051
11	$385,267	$25,204
12	$436,846	$28,579
13	$492,035	$32,189
14. ( 2038)	$551,088	$36,052

 

2024+14= 2038

[Silent_Boy]

12 minutes ago, Kalam_Youtheman said:

approx 14 yrs padthundhi bro to reach 500k

$23 first year ( 2024)  initially and continue to invest an  $23k every year with an annual compound interest rate  say oka  7% minimum  so balance of $500k  401k reach avvalnte approx 14 years.

year	balance	7% interest say
1  (2024)	$23,000	$0
2	$49,220	$3,220
3	$77,275	$5,055
4	$107,295	$7,019
5	$139,415	$9,121
6	$173,784	$11,369
7	$210,559	$13,775
8	$249,908	$16,349
9	$292,012	$19,104
10	$337,063	$22,051
11	$385,267	$25,204
12	$436,846	$28,579
13	$492,035	$32,189
14. ( 2038)	$551,088	$36,052

 

2024+14= 2038

assuming 23K is our share and maxing out.  Including employer match of 3% or 5% can bring down the above math to less years. 

[Kalam_Youtheman]

4 minutes ago, Silent_Boy said:

assuming 23K is our share and maxing out.  Including employer match of 3% or 5% can bring down the above math to less years. 

ahh I missed it in the calculatiom.let me put that in excel...