jobkastalu Posted April 4 Author Report Posted April 4 9 hours ago, ChanceCoffeeLover said: If you have kids and if they plan to be in US later in life, you can pass on to kids as inheritance. US citizenship ivvadame peddha inheritance inka aasthula kuda ivvala. Obviously, if anything left after our needs that will go to kids automatically. Quote
Sizzler Posted April 4 Report Posted April 4 Roth IRA is an additional tax saving vehicle. If are under the income limits, you can max out Roth IRA. You can max out Roth IRA after contributing to 401K upto company’s match and then max out 401K. People do back door Roth IRA if they are not qualified because of income limits. They don’t get the tax benefit though. Flexibility of withdrawing is the advantage of Roth IRA over 401K. Quote
jobkastalu Posted April 4 Author Report Posted April 4 11 hours ago, aratipandu said: Your prersonal preference anna...I'd recommend maxing out 401k first but you are already doing it... do you still have extra cash lying around? then go ahead with IRA..traditional or roth is again your preference based on your tax brackets etc Complicated process ante...401k ayna, IRA ayna future lo same process untadhi withdrawals ki...elago 401k ki aa complicated process follow avthav ga...you'll mostly be rolling your 401k into an IRA after leaving your employer...all IRA accounts merge cheseskovacchu appudu..so same complication irrespectively India doesn't seem to recognize roth. if we have roth and wants to retire in india, india taxes on roth income again so we may end up paying double taxes on roth which meant be tax free in retirement. Quote
jobkastalu Posted April 4 Author Report Posted April 4 1 minute ago, Sizzler said: Roth IRA is an additional tax saving vehicle. If are under the income limits, you can max out Roth IRA. You can max out Roth IRA after contributing to 401K upto company’s match and then max out 401K. People do back door Roth IRA if they are not qualified because of income limits. They don’t get the tax benefit though. India doesn't recognize roth. You may end up paying taxes on any roth withdrawls in india which meant be tax free. Quote
jobkastalu Posted April 4 Author Report Posted April 4 16 minutes ago, tollywood_hater said: If you are eligible,yes. Ira is tax free after your eligible for withdrawal unlike 401k which is pre tax now..... Again your personal choice Roth IRA withdrawls are tax free not traditional IRA. Roth will be good for someone retiring in US but not in india as you will end up paying taxes on roth in india as india don't recognize roth. Quote
tollywood_hater Posted April 4 Report Posted April 4 3 minutes ago, jobkastalu said: Roth IRA withdrawls are tax free not traditional IRA. Roth will be good for someone retiring in US but not in india as you will end up paying taxes on roth in india as india don't recognize roth. yes , when he mentioned he already has 401K ,I assume he is looking for Roth or backdoor roth .... you are correct on Tax , 401k/ traditional IRA treat same , pre-tax contribution , tax on withdrawals .... Quote
jobkastalu Posted April 4 Author Report Posted April 4 2 minutes ago, tollywood_hater said: yes , when he mentioned he already has 401K ,I assume he is looking for Roth or backdoor roth .... you are correct on Tax , 401k/ traditional IRA treat same , pre-tax contribution , tax on withdrawals .... I wanted Roth as I already have 401K but changed my mind to traditional IRA due to india not recognizing Roth. I don't have GC and don't think I would get it any sooner with 2018 priority date. Quote
Konebhar6 Posted April 4 Report Posted April 4 38 minutes ago, jobkastalu said: Opened an account in Fidelity for IRA. Would it be better to go with target date retirement funds or anything else? Go aggressive. Market tanked 10% in 2 days and NASDAQ fell 20% from the top. Its a manufactured crisis. It should move back up. Go with VOO, VTI, SPY or QQQ. Or a combination of all. If you do not want to take risk. Go with Target data retirement funds. Quote
jobkastalu Posted April 4 Author Report Posted April 4 38 minutes ago, Konebhar6 said: Go aggressive. Market tanked 10% in 2 days and NASDAQ fell 20% from the top. Its a manufactured crisis. It should move back up. Go with VOO, VTI, SPY or QQQ. Or a combination of all. If you do not want to take risk. Go with Target data retirement funds. What % breakdown would be good if I have to go with the combination of the funds you mentioned? Would it be a good idea to have Fidelity GO robo adviser rather than constanlty watching market and adjusting on our own? Quote
perugu_vada Posted April 4 Report Posted April 4 56 minutes ago, Konebhar6 said: Go aggressive. Market tanked 10% in 2 days and NASDAQ fell 20% from the top. Its a manufactured crisis. It should move back up. Go with VOO, VTI, SPY or QQQ. Or a combination of all. If you do not want to take risk. Go with Target data retirement funds. Okko dhantlo 20k invest cheseyala @Konebhar6 uncle Quote
phatposts Posted April 4 Report Posted April 4 its not at all complicated. evaru chepparu complicated ani? If your IRA contributions are tax deductible - 1st is IRA then 401k If not - 401k and if you believe in long term investing in the US - then 401k along with backdoor roth ira. Backdoor roth gives tax advantage over the investing period but does not give any tax deferring relief. 30y of investing through backdoor roth vs straightup brokerage account makes a $3-$400k difference when you are 60. Quote
Suvera Posted April 4 Report Posted April 4 3 minutes ago, phatposts said: its not at all complicated. evaru chepparu complicated ani? If your IRA contributions are tax deductible - 1st is IRA then 401k If not - 401k and if you believe in long term investing in the US - then 401k along with backdoor roth ira. Backdoor roth gives tax advantage over the investing period but does not give any tax deferring relief. 30y of investing through backdoor roth vs straightup brokerage account makes a $3-$400k difference when you are 60. What’s backdoor Roth ? Quote
phatposts Posted April 4 Report Posted April 4 1 minute ago, Suvera said: What’s backdoor Roth ? ee db lo konni vandala postlu unnayi daani meeda https://www.fidelity.com/learning-center/personal-finance/backdoor-roth-ira Quote
Konebhar6 Posted April 4 Report Posted April 4 18 minutes ago, perugu_vada said: Okko dhantlo 20k invest cheseyala @Konebhar6 uncle Buy some front line stocks as well Quote
Konebhar6 Posted April 4 Report Posted April 4 37 minutes ago, jobkastalu said: What % breakdown would be good if I have to go with the combination of the funds you mentioned? Would it be a good idea to have Fidelity GO robo adviser rather than constanlty watching market and adjusting on our own? I haven’t tried robo advisor but it should be decent. 401k funds are buy and forget. You don’t often get these opportunities of index down 20% in a month Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.