Idassamed Posted February 28, 2018 Report Share Posted February 28, 2018 2 hours ago, Gaali_Gottam_Govinda said: Quote Link to comment Share on other sites More sharing options...
phatposts Posted February 28, 2018 Report Share Posted February 28, 2018 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. Quote Link to comment Share on other sites More sharing options...
sollugadu Posted February 28, 2018 Report Share Posted February 28, 2018 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. Quote Link to comment Share on other sites More sharing options...
Bhia Posted February 28, 2018 Report Share Posted February 28, 2018 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 Quote Link to comment Share on other sites More sharing options...
LungiLingaraju Posted February 28, 2018 Report Share Posted February 28, 2018 1 hour ago, Bhia said: 96K 6% from employer contribution 4 yrs FT Nee salary entha bhaiyya... baga pogu chesav Quote Link to comment Share on other sites More sharing options...
AlaElaAlaEla Posted February 28, 2018 Report Share Posted February 28, 2018 1 hour ago, Bhia said: 96K 6% from employer contribution 4 yrs FT Quote Link to comment Share on other sites More sharing options...
Bhia Posted February 28, 2018 Report Share Posted February 28, 2018 14 minutes ago, LungiLingaraju said: Nee salary entha bhaiyya... baga pogu chesav Started with 105K now 129K bro Quote Link to comment Share on other sites More sharing options...
AlaElaAlaEla Posted February 28, 2018 Report Share Posted February 28, 2018 8 minutes ago, Bhia said: Started with 105K now 129K bro Quote Link to comment Share on other sites More sharing options...
Bhia Posted February 28, 2018 Report Share Posted February 28, 2018 2 minutes ago, AlaElaAlaEla said: Rey Quote Link to comment Share on other sites More sharing options...
AlaElaAlaEla Posted February 28, 2018 Report Share Posted February 28, 2018 Just now, Bhia said: Rey Quote Link to comment Share on other sites More sharing options...
Vaampire Posted February 28, 2018 Report Share Posted February 28, 2018 Close to 300k Quote Link to comment Share on other sites More sharing options...
masakali Posted February 28, 2018 Report Share Posted February 28, 2018 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 Quote Link to comment Share on other sites More sharing options...
MusuguVeiMazzaChei Posted February 28, 2018 Report Share Posted February 28, 2018 17 hours ago, mulakaya_123456 said: Employer contribution $0, ina kooda 401k lo pettara evarina? yes , me .43k so far mostly to avoid taxes Quote Link to comment Share on other sites More sharing options...
MusuguVeiMazzaChei Posted February 28, 2018 Report Share Posted February 28, 2018 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 Quote Link to comment Share on other sites More sharing options...
Quickgun_murugan Posted February 28, 2018 Report Share Posted February 28, 2018 21 hours ago, Raithu_bidda_ said: Nadi 250k and counting will my employer contribution is 20 percent Super.. 50% isthey inka baguntadi kada Quote Link to comment Share on other sites More sharing options...
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.