401k Max out entha mandhi

[Kalam_Youtheman]

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[Kalam_Youtheman]

Year	Beginning Balance	Employer Match	7% Return Increase	Final Balance
2024	$0	$3,000	$1,820	$27,820
2025	$27,820	$3,000	$3,767	$57,587
2026	$57,587	$3,000	$5,851	$89,439
2027	$89,439	$3,000	$8,081	$123,519
2028	$123,519	$3,000	$10,466	$159,986
2029	$159,986	$3,000	$13,019	$199,005
2030	$199,005	$3,000	$15,750	$240,755
2031	$240,755	$3,000	$18,673	$285,428
2032	$285,428	$3,000	$21,800	$333,228
2033	$333,228	$3,000	$25,146	$384,374
2034	$384,374	$3,000	$28,726	$439,100
2035	$439,100	$3,000	$32,557	$497,657
2036	$497,657	$3,000	$36,656	$560,313
2037	$560,313	$3,000	$41,042	$627,355

1 hour 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. 

3 % add chesthe 2 year thaggind bro


 

[JanasenaKiMusti]

On 3/14/2024 at 10:45 AM, Kalam_Youtheman said:

Bhayyo every year I contribute to 401k.. company 3% match so just contributing 3% but end of year I owe taxes.. maa tax consultant emo max out chesko 23k limit atleast koncham anna save chesko ani but naaa uddesham lo ee 401k oka scam anipisthundhii.... 3 % free money kadha ani enrolled ... but moving forward is it a good idea to max out and take the tax advantage benefits...futture lo edho oka confidence untudhii aa 401k money choosthunte...entho kontha saved kadha ani

 

[Kalam_Youtheman]

1 hour ago, papampasivadu said:

Normal people worj 30-35 yrs man...after that they take retirement...2038 varku wait chese opika kuda lekapothe kashtam...

true,, I just presented when it would be anedhii...to reach 500K

[meandhrakurradu]

20 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? 

Anni telisipotai bro, you cannot hide it. Adi income kinda count avtadi as per India rules. 
401k is good because you are paying tax here, so no need to pay again in India but Roth is a different story 

[rmJU72]

8 hours ago, Kalam_Youtheman said:

Year	Beginning Balance	Employer Match	7% Return Increase	Final Balance
2024	$0	$3,000	$1,820	$27,820
2025	$27,820	$3,000	$3,767	$57,587
2026	$57,587	$3,000	$5,851	$89,439
2027	$89,439	$3,000	$8,081	$123,519
2028	$123,519	$3,000	$10,466	$159,986
2029	$159,986	$3,000	$13,019	$199,005
2030	$199,005	$3,000	$15,750	$240,755
2031	$240,755	$3,000	$18,673	$285,428
2032	$285,428	$3,000	$21,800	$333,228
2033	$333,228	$3,000	$25,146	$384,374
2034	$384,374	$3,000	$28,726	$439,100
2035	$439,100	$3,000	$32,557	$497,657
2036	$497,657	$3,000	$36,656	$560,313
2037	$560,313	$3,000	$41,042	$627,355

 

3 % add chesthe 2 year thaggind bro


 

Just contribute to both pretax after tax 401k (and convert to Roth) for a few years. This way you can jump start it and be at 500k in 5-6 years

[Konebhar6]

2 hours ago, meandhrakurradu said:

Anni telisipotai bro, you cannot hide it. Adi income kinda count avtadi as per India rules. 
401k is good because you are paying tax here, so no need to pay again in India but Roth is a different story 

Never knew. Have to research more

[Webdev]

12 hours 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

How to get 7% interest rate on fidelity 401 k account? I started maxing out

[Peddayana]

11 hours ago, Kalam_Youtheman said:

Year	Beginning Balance	Employer Match	7% Return Increase	Final Balance
2024	$0	$3,000	$1,820	$27,820
2025	$27,820	$3,000	$3,767	$57,587
2026	$57,587	$3,000	$5,851	$89,439
2027	$89,439	$3,000	$8,081	$123,519
2028	$123,519	$3,000	$10,466	$159,986
2029	$159,986	$3,000	$13,019	$199,005
2030	$199,005	$3,000	$15,750	$240,755
2031	$240,755	$3,000	$18,673	$285,428
2032	$285,428	$3,000	$21,800	$333,228
2033	$333,228	$3,000	$25,146	$384,374
2034	$384,374	$3,000	$28,726	$439,100
2035	$439,100	$3,000	$32,557	$497,657
2036	$497,657	$3,000	$36,656	$560,313
2037	$560,313	$3,000	$41,042	$627,355

 

3 % add chesthe 2 year thaggind bro


 

and it will improve even more if you account for 401k limit increase every year, may be 500$ or so

[Peddayana]

11 hours ago, Kalam_Youtheman said:

Year	Beginning Balance	Employer Match	7% Return Increase	Final Balance
2024	$0	$3,000	$1,820	$27,820
2025	$27,820	$3,000	$3,767	$57,587
2026	$57,587	$3,000	$5,851	$89,439
2027	$89,439	$3,000	$8,081	$123,519
2028	$123,519	$3,000	$10,466	$159,986
2029	$159,986	$3,000	$13,019	$199,005
2030	$199,005	$3,000	$15,750	$240,755
2031	$240,755	$3,000	$18,673	$285,428
2032	$285,428	$3,000	$21,800	$333,228
2033	$333,228	$3,000	$25,146	$384,374
2034	$384,374	$3,000	$28,726	$439,100
2035	$439,100	$3,000	$32,557	$497,657
2036	$497,657	$3,000	$36,656	$560,313
2037	$560,313	$3,000	$41,042	$627,355

 

3 % add chesthe 2 year thaggind bro


 

couple of points, employer match is also on base salary usually, 3k is conservative, If your base is 150k or 200k, you can get upto 4.5-6k match every year

also your base salary probably increases by another 2-3% every year