401k balance

[Idassamed]

2 hours ago, Gaali_Gottam_Govinda said:

[phatposts]

1 hour ago, tvda said:

what if madyalo india ki velipovalsi vaste? madyalo teskunte tax and penalty kattalani vinna, but can we keep in the same account until retirement age?

India vellipovalsi vaste you can actually make a good use case out of it. 

For example, you have 100K in your 401k and you left to India for good. 

You can do one of the below:

Option # 1:

Let the 100K be in your 401k and let it sit there till you reach 59.5. After that you can withdraw that. At the time of withdrawal if your balance is 200k(with appreciation and compounding) you pay taxes on the 200k. there are ways to mitigate that but lets leave it there for now.

 

Option # 2:

At the time of leaving for good to India you have 100K. Let us assume you left for good in 2019.

With the current tax brackets (revised), your federal tax brackets are 
1. Up to 19250 --> 10%

2. Up to 77400 --> 12%

Now in 2020 if you withdraw 20000 from your 401k -- you will incur a penalty of 10% for early withdrawal. And the 18000 (after penalty) will be counted towards your earning for 2020.
You pay taxes for that 18000 @ 10% only. 

Had you withdrew the 20K staying in the US, this 18000 adds up to your income for 2020 and you end up paying higher tax.

 

If your employer matches 401k and you are not investing in it - you are saying I DO NOT WANT FREE MONEY & I WANT TO PAY MORE TAX

If your employer does not match and you do NOT invest in 401k, make sure your money is growing better than AT LEAST your federal tax bracket rate. If not you better put the money in 401k.

Also keep in mind, 401k progresses (or declines) based on your fund selection. Selecting funds with less operational costs, understanding exposure etc are important. If you are not aware talk to a financial advisory. When stock market goes down, your 401k will go down too. But you will have to average over decades but not mere years.

 

 

[sollugadu]

For all those intresetd in learning more on 401k 

https://www.stitcher.com/podcast/quick-dirty-tips/money-girls-quick-and-dirty-tips-for-a-richer-life-15423/e/53187667

 

If possible contribute more to Roth 401k. I never knew this. But so far no regrets in investing 401k.

[Bhia]

5 hours ago, KakiJanaky said:

mee 401k balance cheppandi vayya so far, if u guys are contributing. to start with, naadi yaabai velu and counting..

96K 6% from employer contribution 4 yrs FT 

[LungiLingaraju]

1 hour ago, Bhia said:

96K 6% from employer contribution 4 yrs FT 

Nee salary entha bhaiyya... baga pogu chesav 

[AlaElaAlaEla]

1 hour ago, Bhia said:

96K 6% from employer contribution 4 yrs FT 

[Bhia]

14 minutes ago, LungiLingaraju said:

Nee salary entha bhaiyya... baga pogu chesav 

Started with 105K now 129K bro

[AlaElaAlaEla]

8 minutes ago, Bhia said:

Started with 105K now 129K bro

[Bhia]

2 minutes ago, AlaElaAlaEla said:

Rey

[AlaElaAlaEla]

Just now, Bhia said:

Rey

[Vaampire]

Close to 300k

[masakali]

16 hours ago, phatposts said:

India vellipovalsi vaste you can actually make a good use case out of it. 

For example, you have 100K in your 401k and you left to India for good. 

You can do one of the below:

Option # 1:

Let the 100K be in your 401k and let it sit there till you reach 59.5. After that you can withdraw that. At the time of withdrawal if your balance is 200k(with appreciation and compounding) you pay taxes on the 200k. there are ways to mitigate that but lets leave it there for now.

 

Option # 2:

At the time of leaving for good to India you have 100K. Let us assume you left for good in 2019.

With the current tax brackets (revised), your federal tax brackets are 
1. Up to 19250 --> 10%

2. Up to 77400 --> 12%

Now in 2020 if you withdraw 20000 from your 401k -- you will incur a penalty of 10% for early withdrawal. And the 18000 (after penalty) will be counted towards your earning for 2020.
You pay taxes for that 18000 @ 10% only. 

Had you withdrew the 20K staying in the US, this 18000 adds up to your income for 2020 and you end up paying higher tax.

 

If your employer matches 401k and you are not investing in it - you are saying I DO NOT WANT FREE MONEY & I WANT TO PAY MORE TAX

If your employer does not match and you do NOT invest in 401k, make sure your money is growing better than AT LEAST your federal tax bracket rate. If not you better put the money in 401k.

Also keep in mind, 401k progresses (or declines) based on your fund selection. Selecting funds with less operational costs, understanding exposure etc are important. If you are not aware talk to a financial advisory. When stock market goes down, your 401k will go down too. But you will have to average over decades but not mere years.

 

 

+1 baga chepthiri

[MusuguVeiMazzaChei]

17 hours ago, mulakaya_123456 said:

Employer contribution $0, ina kooda 401k lo pettara evarina?

yes , me .43k so far mostly to avoid taxes

[MusuguVeiMazzaChei]

16 hours ago, phatposts said:

India vellipovalsi vaste you can actually make a good use case out of it. 

For example, you have 100K in your 401k and you left to India for good. 

You can do one of the below:

Option # 1:

Let the 100K be in your 401k and let it sit there till you reach 59.5. After that you can withdraw that. At the time of withdrawal if your balance is 200k(with appreciation and compounding) you pay taxes on the 200k. there are ways to mitigate that but lets leave it there for now.

 

Option # 2:

At the time of leaving for good to India you have 100K. Let us assume you left for good in 2019.

With the current tax brackets (revised), your federal tax brackets are 
1. Up to 19250 --> 10%

2. Up to 77400 --> 12%

Now in 2020 if you withdraw 20000 from your 401k -- you will incur a penalty of 10% for early withdrawal. And the 18000 (after penalty) will be counted towards your earning for 2020.
You pay taxes for that 18000 @ 10% only. 

Had you withdrew the 20K staying in the US, this 18000 adds up to your income for 2020 and you end up paying higher tax.

 

If your employer matches 401k and you are not investing in it - you are saying I DO NOT WANT FREE MONEY & I WANT TO PAY MORE TAX

If your employer does not match and you do NOT invest in 401k, make sure your money is growing better than AT LEAST your federal tax bracket rate. If not you better put the money in 401k.

Also keep in mind, 401k progresses (or declines) based on your fund selection. Selecting funds with less operational costs, understanding exposure etc are important. If you are not aware talk to a financial advisory. When stock market goes down, your 401k will go down too. But you will have to average over decades but not mere years.

 

 

+999

[Quickgun_murugan]

21 hours ago, Raithu_bidda_ said:

Nadi 250k and counting will my employer contribution is 20 percent 

Super.. 50% isthey inka baguntadi kada