amount already paid and accumulated in the account? I figure 401K is a great way to save tax, but may not have much meaning if I plan on leaving the country to work internationally 5 or 6 years down te road, and I cannot reclaim my investment? Any experience/knowledge on this? Is 401K still a good investment?
Thanks...
2006-09-29 18:31:33 · 2 answers · asked by Curious_N_Cool 2 in Business & Finance ➔ Personal Finance
Yes 401K is personally owned by you even though it is held in a trustee insitution. Even better you are deffering taxes on both the income you earned and the appreciation of the investment is not taxed either while it is in the account.
Bets of all you will be out of teh country when you are ready to reclaim it so your US taxable income will be minimal. You will still need to be 59.5 years old to make withdrawls without triggering the 10% withdrawl penalty.
2006-09-29 18:38:23 · answer #1 · answered by newsreader325 2 · 0⤊ 0⤋
Good answer above. I would also consider rolling over into an IRA and converting to a Roth if eligible while you are overseas. This way, if your US income is low you will pay little taxes on the conversion and when you eventually pull the $ out it will be all tax free!!!
2006-09-30 08:57:42 · answer #2 · answered by GoodTimesMakingMoney 2 · 0⤊ 0⤋