I am from another country and have a great job in USA. My company has an excellent 401 k plan. We will probably be going back home after 10 years or so, so I was wondering whether I should enroll or not. Would I be able to get my hard-earned money if I'm living outside USA? How would it all work?
2006-11-16 03:49:34 · 5 answers · asked by anniem 1 in Business & Finance ➔ Personal Finance
My company is contibuting 25%.
2006-11-16 04:21:22 · update #1
Yes, you should. As long as the company is contributing as well. If The company isn't, it might be better for you to invest in something else. You would be able to cash in your 401k in 10 years, there will be a fee, but it still would be worth it.
2006-11-16 03:53:54 · answer #1 · answered by serendipity_siren 5 · 0⤊ 0⤋
If they match 25% then you should do the same, its like doubling your money.
First check into the investment accounts you have in your country for you to be able to roll over your 401K into that account when you are done here. Start the roll over process before you leave your job. Inquire NOW about investment accounts that will be compatible with a 401 rollover in the future from your homeland.
Happy Investing!
: )
2006-11-16 13:35:50 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
Invest only up to the limit of the match. This is free money and should never be turned down. Depending on your age you should be careful about how much you are putting in tax-deferred accounts. You are avoiding some taxes on the money today but you are creating a much bigger tax liability years down the road when you don't know what the tax burden will be. If you are like most people I ask you will agree that taxes are likely to be going up as more and more baby boomers retire and fewer workers are supporting them. This is true in all parts of the world.
You should be investing in the bulk of your retirement dollars into tax-free instruments such as ROTH IRAs and Investment Grade Life Insurance.
2006-11-16 13:48:32 · answer #3 · answered by Marc C 1 · 0⤊ 0⤋
I agree with the first response especially on the match. You can always have the money put into a Roth-IRA to avoid penalities if you do leave the country.
2006-11-16 11:59:14 · answer #4 · answered by Ms. Dorsey 3 · 0⤊ 0⤋
Yes, as long as you have money to put aside that won't jeopardize your overall financial picture.
At least add to your 401k to the match limit, it's essentially free money. Again, make sure you don't over-extend yourself, and end up with nothing to pay off bills and everything else.
Educate yourself about credit, mortgage, and finance at http://www.thetruthaboutmortgage.com
2006-11-16 12:46:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋