Is 401K A Good Option For H1B Visa Holder?

[aakpak_karepak007]

Chala bad opinion unnattu undi FT MEEDA Neeku

Dippam

[Chitralekha]

so they are not matching

just they have 401(k) plan u can buy into

useless, take ur money and put it in ira/roth(IRA) for retirement..

loan illu konadaaniki or health issues ki teesukovachu ..which u can do with ira too and ira has more options and not linked to employer

when employer is not matching and its your own money why should put in 401(k)..not a bright idea

 

 

Employer through aithe BEst kadha?? Tax save avthundhanukunna.. 401k amount cut cheskoni.. remaining amount Paycheck  run avthundhi kadha?

[Moon_Walker]

so they are not matching

just they have 401(k) plan u can buy into

useless, take ur money and put it in ira/roth(IRA) for retirement..

loan illu konadaaniki or health issues ki teesukovachu ..which u can do with ira too and ira has more options and not linked to employer

when employer is not matching and its your own money why should put in 401(k)..not a bright idea

 

Dude i think u have a very interesting point here.  I have seen many people always focused on 401(k) but not many talk about IRA/roth(IRA).

 

If u don't mind can u give the pros and cons for IRA/Roth(IRA) as even my employer doesn't match 401(k). What is your opinion on Roth 401(k)?

[Bhalegunde]

Employer through aithe BEst kadha?? Tax save avthundhanukunna.. 401k amount cut cheskoni.. remaining amount Paycheck  run avthundhi kadha?

nuvvu taxes file chesinappudu ira lo pettinavi kooda tsx dsvr svuthaayi

u just need to enter

kaavlante ira loki kooda every month pay chesukovachu kontha amount

employer tho waste..generally limited funds untaayi and malle ujjogam maanesthe u need to roll them over to ira or new 401k with ur new employer

so nee money..just u be the master..vaadu match cheste ok..lenappudu 401k anavasaram until u max out ur ira and roth ira(no tax benefit now)

[Hyderabad_Nawab]

theskuntanoo ledha neekendhuku cheppali.. 

mari Only benefit 401 and Health insurance ani cheppadam avasarama neeku.. Half Dhimaak fellaw..

[Chitralekha]

nuvvu taxes file chesinappudu ira lo pettinavi kooda tsx dsvr svuthaayi

u just need to enter

kaavlante ira loki kooda every month pay chesukovachu kontha amount

employer tho waste..generally limited funds untaayi and malle ujjogam maanesthe u need to roll them over to ira or new 401k with ur new employer

so nee money..just u be the master..vaadu match cheste ok..lenappudu 401k anavasaram until u max out ur ira and roth ira(no tax benefit now)

 

Super  cehpparu..

 

so, Ira roth research chesi.. ala monthly pay  cheyyatam better.. anthe na? 

[Hyderabad_Nawab]

annitikanna imp benefit  visa stamping easy

+1..

[gabbarsingh1]

common sense... all your calculations are solely based on employer matching with ur investment.....

 

percentage basis meeda contract job lu cheskunetollaki idi varthinchadu.....   

 

It is often difficult to make decisions about future, especially when you are thirty or forty years away from your retirement. However, the years do fly especially after the age of thirty five and if you had an extremely busy life raising a family coupled with a demanding career. So, if you are thinking of a good retirement plan then 401(k) and Roth IRA are very good options to consider.

What is a 401(k) and Roth IRA?

401(K):

401(k) is an employer-sponsored retirement plan. Employee’s contribution to the 401(k) plan will get deducted from their paycheck every time before taxation. In many cases, Employer will match up to some percentage of Employee`s contribution.

Employee’s contribution to the 401(k) plan will be invested in funds based on your choice. It is tax-deferred which means, you are not going to pay taxes until you withdraw the money.

Roth IRA:

Roth IRA is an individual retirement plan. Contribution to the Roth IRA will get deducted after taxation. So, no need to pay taxes at the time of withdrawal.

 

Is 401k a good option for a H1b visa holder?

Absolutely yes, contributions to 401(k) plan is a very good option for H1b visa holders. If your employer is offering 401(k) then it is highly advisable to join the plan for the below reasons.

 

• Contributions to the 401(k) plan are free from State and Federal taxes. You have to pay taxes only when you withdraw. If you are in a lower tax bracket when you retire, you will        be paying less taxes.
• If your employer is also contributing to the employee’s 401(k) plan, this is Free Money! You are getting a ROI of 100% for every dollar your employer matches. Where else can you get 100% ROI?
• 401(k) plan allows you to take loans against the money you have contributed to this plan. Loans will be issued for financing a home, health problems etc.
• 401(k) plan allows withdrawal of money during financial hard times. 10% penalty will be charged for an early withdrawal before the age of 59.5 years.

Here is an example for “Investing in 401(k)” VS “Not Investing in 401(k)”:

• Your Salary: 100k
• Employer Match : 100% match up to 4% of your Annual Salary
• Taxes: 30%

Investing in 401(k) Scenario:

• Your Contribution: 4% of 100k = $4,000
• Employer Match: 4% of 100k = $4,000
• Total Contribution: $4,000 + $4,000 =$8,000

If you want to withdraw after one year, you will be paying 10% penalty and 30% taxes. So you will get 60% 0f $8000 = $4800

If you don`t invest in 401(k):

You will be paying 30% taxes on $4000. You will be left with 70% of $4000 = $2800.

$4800 vs $2800. You decide 

 

 

 

 

lol... nuvvu contractor aa lekapothe fte? if contractor.. percentage basis aa.. lekapothe salary based... if salary based... with all benefits... then you can ask man... otherwise... it's a waste.. 

Inni rojulu, e vishayam teliyaka tesukoledu
Ipudu year middle lo istado ledo

 

[Bhalegunde]

Dude i think u have a very interesting point here.  I have seen many people always focused on 401(k) but not many talk about IRA/roth(IRA).
 
If u don't mind can u give the pros and cons for IRA/Roth(IRA) as even my employer doesn't match 401(k). What is your opinion on Roth 401(k)?

ira is pre taxes..meaning u get tax benefit

roth ira is post taxes..meaning its contributed after u pay taxes

both are excellent for retirement..u can open them with any custodian like etrade,scottrade,vanguard (vanguard is my personal favorite as they have the lowest cost index funds)

regd my opinion,vanguard with ultra low fee one

index funds

[KothaHero]

Dude i think u have a very interesting point here.  I have seen many people always focused on 401(k) but not many talk about IRA/roth(IRA).

 

If u don't mind can u give the pros and cons for IRA/Roth(IRA) as even my employer doesn't match 401(k). What is your opinion on Roth 401(k)?

Simple rule if you are young than 59, individual unmarried make less than 115k (2014) , go for RothIRA, or married combined income less than 188k go for Roth IRA

[Bhalegunde]

Super  cehpparu..
 
so, Ira roth research chesi.. ala monthly pay  cheyyatam better.. anthe na?

u can do it one go or monthly

actually if u havent filed ur taxes for 2014, u can do it now alos..u can pay into ira until apr 15 of the following year

so u can pay for 2014 today and get tax benefit for ur filing of 2014 taxes

ira max limit about 6000 anukunta..u can do one go or monthly

go to scottrade and talk to them

if u want to do above 10k, u can pay for 2014 and 2015 at one go and use vanguard in that case

[gabbarsingh1]

Employer through aithe BEst kadha?? Tax save avthundhanukunna.. 401k amount cut cheskoni.. remaining amount Paycheck  run avthundhi kadha?

nuvvu ese post nuvvaina sadivava....   nuvvesina thread... nuvvesina post.. they contardict each other... 

[gabbarsingh1]

Are people here really so dumb or they just act in this DB  

[Chitralekha]

u can do it one go or monthly

actually if u havent filed ur taxes for 2014, u can do it now alos..u can pay into ira until apr 15 of the following year

so u can pay for 2014 today and get tax benefit for ur filing of 2014 taxes

ira max limit about 6000 anukunta..u can do one go or monthly

go to scottrade and talk to them

if u want to do above 10k, u can pay for 2014 and 2015 at one go and use vanguard in that case

 

 

sure... 

[ipaddress0]

Chala bad opinion unnattu undi FT MEEDA Neeku
 

dippam