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Is 401k worth?


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Posted

good morning

401k ela work avuthadi ani idea ledu, join avudam anukuntunna but numbers calculate cheste antha benefit ledu anipistundi, so posting here for clarification

6% with out tax mana daggara nundi teskuntadu

3% is my company matching

we can only take them out at the age of 59 and half or after, ipdu unna position lo manam appudu varaku undatam anedi jarige laa ledu

so before ah age teskovali ante 10% penalty + regular taxes pay cheyali anta

example ga lets say $1000 is in my 401k, $300 will be the match which totals $1300. if worst case some thing happened and we have take the money out

10% penalty tax = 130

30% (estimated) regular taxes on h1b = $350

So hand ki final ga $820 vastunnay, $1000 pedithe.

 

Not sure if this is the right way of calculating 401k, please throw some light. Thanks!

Posted

Wrong calculation 

nee money $1000 enti company contribution $300 ela?

Posted
2 minutes ago, kingoftollywood said:

Wrong calculation 

nee money $1000 enti company contribution $300 ela?

if i understood correct, they will take a minimum of 6% or more of our choice from our salary before taxes every month. so at the end of the year lets say 6% is $1000. 

sorry i did wrong, 3% of $1000 is just $30, so how will it work sCo_^Y

Posted
Just now, tables said:

Vere options em unnai neeku?

for? savings?

Posted

As far as I know...

lets say your salary is $100k

5% is your contribution - 5k

5% company matches - 5k

if you want to withdraw total of 10k

10% penalty - $1000

30% taxes - $3000

you will lose 4k and get 1k profit.

 

 

Posted

1000 dollars is 6 % contribution , 3 % is 500 dollars it is free money from employer 

you money is invested currently my 401 has 26 % return and add 400 for that 

that will bring your money to 

1900 and 10 % is 190 + your tax will be around 300 or 400 depending on your income 

ao you will end up 1400 dollars 

but again you take loan on your 401k amd pay your self the interest 

as it is ur money 

Posted
13 minutes ago, devarakonda said:

if i understood correct, they will take a minimum of 6% or more of our choice from our salary before taxes every month. so at the end of the year lets say 6% is $1000. 

sorry i did wrong, 3% of $1000 is just $30, so how will it work sCo_^Y

Nee contribution lo 3% kaadu , nee salary lo 3 % contribute chestadu mee employer.

Posted

Where is sign up for this ?? Employer has to do or maname cheskovacha ?

Posted

Its worth it. Future lo illu koneytappudu loan thisukovachu daani meedha and few other benefits. Dyor

i am contributing max. My employer  contributes another $9300

Posted
6 minutes ago, devarakonda said:

if i understood correct, they will take a minimum of 6% or more of our choice from our salary before taxes every month. so at the end of the year lets say 6% is $1000. 

sorry i did wrong, 3% of $1000 is just $30, so how will it work sCo_^Y

It is not a percentage of what you invest. It is a employer match. If employer matches 100% upto 6% and you make 100k, you get 12000 per year into 401k. Don’t forget if the annual rate of growth that increases the fund every year. You will make close to 2.5 million at the age of 65. This money can be paid out as an annual salary after 65. You will get 100k per year if you lived for the next 25 years. If you account for inflation 100k would be around 50k in today’s money. 

The catch is getting a federal job though. A federal job pays less money but has pension along with 401k which means you get decent money when you retire.

Posted
54 minutes ago, Staysafebro said:

It is not a percentage of what you invest. It is a employer match. If employer matches 100% upto 6% and you make 100k, you get 12000 per year into 401k. Don’t forget if the annual rate of growth that increases the fund every year. You will make close to 2.5 million at the age of 65. This money can be paid out as an annual salary after 65. You will get 100k per year if you lived for the next 25 years. If you account for inflation 100k would be around 50k in today’s money. 

The catch is getting a federal job though. A federal job pays less money but has pension along with 401k which means you get decent money when you retire.

Federal job kavalantey antha easy kadu kaka.. try cheyyali..

Posted
2 hours ago, kingoftollywood said:

As far as I know...

lets say your salary is $100k

5% is your contribution - 5k

5% company matches - 5k

if you want to withdraw total of 10k

10% penalty - $1000

30% taxes - $3000

you will lose 4k and get 1k profit.

 

 

bro..how only 1k profit..will it be 2.5k profit?? because if he wont invest in 401k, that 5k goes through federal tax of 30% and comes down to 3500. If he invests, it comes to 6000. so profit at end of 1 yr is 6k-3.5k = 2.5k

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