USA residents mostly know about the common tax saving retirement plan BUT lot of Indians and many other resident aliens from other countries working in USA are unaware of this plan OR have misconceptions which prevent them from taking full advantage of this employee benefit plan..
Check with your company HRs about the match limit. It ranges from 3% to 8%. Pls use full benefit and invest as per maximum limit available
Watch video 2 for withdrawal process
A long term investor should not be worried with short bear markets.
Those interested in stock market investing can open trading account with below links:
(Indian subscribers can open account from below link with zerodha )
(USA subscribers can open account from below link with robinhood)
#401k #401k for h1b #TCS #WIPRO #POLARIS #TECHM #COGNI #INFY #COGNIZANT #INFOSYS #STUDENT #US #IT #MS #401k #retirement #savings #USA…(read more)
LEARN MORE ABOUT: 401k Plans
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
For anyone considering working in the United States on an H1B, L1A, F1, or VISA, understanding the concept of a 401K plan is crucial. This form of tax-advantaged retirement savings plan is easily the most significant savings tool in the US, and taking advantage of its benefits is advisable for anyone looking to plan financially for their future.
What is a 401K plan?
A 401K plan is a retirement savings plan that is offered by many employers in the United States. Employees are given the option to contribute a portion of their pre-tax salary into the plan, and this money is then invested in a range of stocks, bonds, and mutual funds. The money that is put into a 401K plan is not taxed until it is withdrawn, at which point it is taxed at the individual’s marginal tax rate.
Why is a 401K plan so important for H1B, L1A, F1, and VISA holders?
The primary reason that a 401K plan is so important for those working on various temporary visas in the United States is that it allows for significant tax advantages. Contributing money into a 401K plan reduces an individual’s taxable income, which can lead to a reduced overall tax liability. Additionally, many employers in the US match a portion of their employees’ contributions into the plan, meaning that employees are essentially being paid extra to save for retirement.
Another benefit of a 401K plan is that the money that is invested has the potential to grow significantly over time, providing a solid foundation for retirement savings. The earlier an individual begins contributing to a 401K plan, the more time there is for their money to grow and compound interest, leading to a more significant overall return.
How to get started with a 401K plan
To get started with a 401K plan, employees should first determine if their employer offers the option. If so, they should speak with their HR representative to determine what options are available, and how to set up the plan. Those with an H1B, L1A, F1, or VISA should be sure to consult with an experienced tax professional to ensure that they are taking advantage of the tax benefits available to them.
In conclusion, for anyone working in the United States on a temporary visa, a 401K plan should be considered the most significant savings tool available. Taking advantage of its tax benefits, potential for growth, and employer contributions can lead to significant financial gains over time.
Good math,sir please guide where to systematic invest money to say tax
Thank you
how are we supposed to retire in usa, if the h1b visa is for 6 years max.
I do have 401K with wells fargo . They informed me like they will withhold 30% as tax while performing withdrawal for all non resident aliens. Is anyway we can reduce this 30% by filing usa tax filing?
Wow, we are so missing this damm opportunity.
Why is roth 401k or roth IRA preferable for us ? On withdrawal we have to pay non resident tax percentage which is 30%
Informative presentation. Thanks for the video representation.
I don't like 401k only because you can't withdraw before 59+ yr of age or if you don't change your employer. Now if someone move back to india and change the employer, is he eligible for withdrawal? And what is the process of withdrawal? Also if you withdraw from traditional plan before 59 of age, you have to pay the taxes of your withdrawal money. I am also putting 5% hoping I can withdraw my money.