Simple123 Posted September 26, 2014 Report Posted September 26, 2014 10% penalty is on top of your usual tax liability. Say you make 100k. If you withdraw 10k from 401f, then your income is considered to be 110k. Your tax will be calculated for 110K. On top of that you will pay 10% penalty for the the 10K you withdraw from your 401K acct. One work around for that is when you move back to India, just withdraw money so that you will fall under the no-tax bracket(less than minimum wage). In that case your tax liability is 0% + 10 % penalty. Good job
akusharat Posted September 26, 2014 Report Posted September 26, 2014 nee age 30 -35 lopu aithe, go for 2050 plan..... usually they will change the plan accordingly monthly to invest in different stocks or ETF's or funds. I am 29, and I picked 2050 plan in my 401k providers plan. Stocks lo aggresive ga untayi stocks..... Madyalo teesukovali anukunte..... 10% fine untadi on top of your taxes, but illu konali anukunte, loan istharu nee 401k nunchi entho % varaku...... it will be useful there
THE_FNG Posted September 26, 2014 Report Posted September 26, 2014 nee age 30 -35 lopu aithe, go for 2050 plan..... usually they will change the plan accordingly monthly to invest in different stocks or ETF's or funds. I am 29, and I picked 2050 plan in my 401k providers plan. Stocks lo aggresive ga untayi stocks..... Madyalo teesukovali anukunte..... 10% fine untadi on top of your taxes, but illu konali anukunte, loan istharu nee 401k nunchi entho % varaku...... it will be useful there You can take a loan out of your 401K if you are buying a house. Loan amount cannot exceed 50% of your 401K balance upto 50K USD. So 401K balance $75K unte, you can take a loan of upto $35,000 only. You will be paying interest for that loan, but that interest will be added to you 401K balance along with the monthly installment. Essentially, you are taking a loan from your own account, repaying yourself with via installment/interest.
akusharat Posted September 29, 2014 Report Posted September 29, 2014 You can take a loan out of your 401K if you are buying a house. Loan amount cannot exceed 50% of your 401K balance upto 50K USD. So 401K balance $75K unte, you can take a loan of upto $35,000 only. You will be paying interest for that loan, but that interest will be added to you 401K balance along with the monthly installment. Essentially, you are taking a loan from your own account, repaying yourself with via installment/interest. Dint know about that 50% limit..... But this will be always helpful to pay the downpayment.
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