401K advice for UK citizen on L1 Visa in US?

Question

Does it make sense for me to invest in a 401K in the US, given that I will probably move back to the UK in 3 to 5 years and, as I understand it, will not be able to transfer it to a UK equivalent without tax and penalties etc? My company already pays into a 401K but I'm not contributing at the moment.

Or would it make sense to keep not contributing and just stick it in a mutual fund?

I also have a UK pension with my employer (same employer) which is currently frozen and I assume I would continue on my return.

Answer 1

By all means, contribute to a 401K, especially if your company gives a match. Even if you move back to the UK, you can still leave your money in the 401K in the US.