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Does it make sense to start saving into a 401k, if you might move out of the US before retirement?
Should I open an RRSP if I don't plan to retire in Canada?Green Card holder (permanent resident): Should I contribute to my employer-matched 401(k), even if I might leave the U.S. later?Employer overpaid 401k - what's my liability?Over contribution to 401K between two employers, and maximizing employer match?Which earnings can be withdrawn when making an in-service withdrawal from a 401k?Could my employer give me a raise in terms of employer 401k contributions instead of salary?New 401(k) account, barely funded: can I withdraw penalty-free?What happens to the company match for a 401k over-contribution?Does 401k on H-1b visa make sense when there is an employer match?How to intentionally overcontribute to 401(k) to maximize new employer's matching?Two jobs two 401K both matches up to 6%
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Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might move out of the US before the age of 59.5 and therefore take my savings with me to another country?
united-states 401k penalty moving employer-match
edited 5 hours ago
Chris W. Rea
26.7k1587175
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
add a comment |
Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might move out of the US before the age of 59.5 and therefore take my savings with me to another country?
united-states 401k penalty moving employer-match
edited 5 hours ago
Chris W. Rea
26.7k1587175
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
Related: money.stackexchange.com/questions/89968/…
– JonathanReez
5 hours ago
Is the question from the point of view of a citizen of the US who plans to retire as an expat in the other country, or a non-US citizen?
– user662852
5 hours ago
@user662852 non-US citizen
– JonathanReez
5 hours ago
Is there something that prevents you from keeping your funds in your 401k even if you move out of the country? Then, just take it out when you turn 59.5?
– Better Budget
3 hours ago
@BetterBudget lots of headache managing a fund in a foreign country, potentially
– JonathanReez
3 hours ago
add a comment |
Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might move out of the US before the age of 59.5 and therefore take my savings with me to another country?
united-states 401k penalty moving employer-match
edited 5 hours ago
Chris W. Rea
26.7k1587175
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
Contributions to 401k funds are subject to a 10% penalty if taken out before the age of 59.5. Presuming my employer has a 401k matching program, does it make sense to contribute to a 401k if I might move out of the US before the age of 59.5 and therefore take my savings with me to another country?
united-states 401k penalty moving employer-match
united-states 401k penalty moving employer-match
edited 5 hours ago
Chris W. Rea
26.7k1587175
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
edited 5 hours ago
Chris W. Rea
26.7k1587175
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
edited 5 hours ago
Chris W. Rea
26.7k1587175
edited 5 hours ago
Chris W. Rea
26.7k1587175
edited 5 hours ago
Chris W. Rea
26.7k1587175
26.7k1587175
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
asked 5 hours ago
JonathanReezJonathanReez
1,69441626
1,69441626
Related: money.stackexchange.com/questions/89968/…
– JonathanReez
5 hours ago
Is the question from the point of view of a citizen of the US who plans to retire as an expat in the other country, or a non-US citizen?
– user662852
5 hours ago
@user662852 non-US citizen
– JonathanReez
5 hours ago
Is there something that prevents you from keeping your funds in your 401k even if you move out of the country? Then, just take it out when you turn 59.5?
– Better Budget
3 hours ago
@BetterBudget lots of headache managing a fund in a foreign country, potentially
– JonathanReez
3 hours ago
add a comment |
Related: money.stackexchange.com/questions/89968/…
– JonathanReez
5 hours ago
Is the question from the point of view of a citizen of the US who plans to retire as an expat in the other country, or a non-US citizen?
– user662852
5 hours ago
@user662852 non-US citizen
– JonathanReez
5 hours ago
Is there something that prevents you from keeping your funds in your 401k even if you move out of the country? Then, just take it out when you turn 59.5?
– Better Budget
3 hours ago
@BetterBudget lots of headache managing a fund in a foreign country, potentially
– JonathanReez
3 hours ago
Related: money.stackexchange.com/questions/89968/…
– JonathanReez
5 hours ago
Related: money.stackexchange.com/questions/89968/…
– JonathanReez
5 hours ago
Is the question from the point of view of a citizen of the US who plans to retire as an expat in the other country, or a non-US citizen?
– user662852
5 hours ago
Is the question from the point of view of a citizen of the US who plans to retire as an expat in the other country, or a non-US citizen?
– user662852
5 hours ago
@user662852 non-US citizen
– JonathanReez
5 hours ago
@user662852 non-US citizen
– JonathanReez
5 hours ago
Is there something that prevents you from keeping your funds in your 401k even if you move out of the country? Then, just take it out when you turn 59.5?
– Better Budget
3 hours ago
Is there something that prevents you from keeping your funds in your 401k even if you move out of the country? Then, just take it out when you turn 59.5?
– Better Budget
3 hours ago
@BetterBudget lots of headache managing a fund in a foreign country, potentially
– JonathanReez
3 hours ago
@BetterBudget lots of headache managing a fund in a foreign country, potentially
– JonathanReez
3 hours ago
add a comment |
1 Answer
1
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oldest
votes
It does make sense to contribute to your 401k, even if you plan to move out of the country. Besides the "headache managing a fund in a foreign country", you can keep your 401k even if you're residing in a foreign country (source). Your best financial outcome would be to contribute to your 401k with matches and hold it until you're 59.5 and just figure out how to minimize the "headache".
answered 2 hours ago
Better BudgetBetter Budget
33613
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Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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2
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
add a comment |
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1 Answer
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1 Answer
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oldest
votes
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votes
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oldest
votes
It does make sense to contribute to your 401k, even if you plan to move out of the country. Besides the "headache managing a fund in a foreign country", you can keep your 401k even if you're residing in a foreign country (source). Your best financial outcome would be to contribute to your 401k with matches and hold it until you're 59.5 and just figure out how to minimize the "headache".
answered 2 hours ago
Better BudgetBetter Budget
33613
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
2
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
add a comment |
It does make sense to contribute to your 401k, even if you plan to move out of the country. Besides the "headache managing a fund in a foreign country", you can keep your 401k even if you're residing in a foreign country (source). Your best financial outcome would be to contribute to your 401k with matches and hold it until you're 59.5 and just figure out how to minimize the "headache".
answered 2 hours ago
Better BudgetBetter Budget
33613
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
2
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
add a comment |
It does make sense to contribute to your 401k, even if you plan to move out of the country. Besides the "headache managing a fund in a foreign country", you can keep your 401k even if you're residing in a foreign country (source). Your best financial outcome would be to contribute to your 401k with matches and hold it until you're 59.5 and just figure out how to minimize the "headache".
answered 2 hours ago
Better BudgetBetter Budget
33613
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
It does make sense to contribute to your 401k, even if you plan to move out of the country. Besides the "headache managing a fund in a foreign country", you can keep your 401k even if you're residing in a foreign country (source). Your best financial outcome would be to contribute to your 401k with matches and hold it until you're 59.5 and just figure out how to minimize the "headache".
answered 2 hours ago
Better BudgetBetter Budget
33613
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 2 hours ago
Better BudgetBetter Budget
33613
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 2 hours ago
Better BudgetBetter Budget
33613
answered 2 hours ago
Better BudgetBetter Budget
33613
33613
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Better Budget is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
2
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
add a comment |
2
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
2
2
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
This does depend on the country. Some will tax you on the yearly gains of the 401k anyway. Then you will be taxed again by the US during draw down.
– Vality
2 hours ago
add a comment |
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Related: money.stackexchange.com/questions/89968/…
– JonathanReez
5 hours ago
Is the question from the point of view of a citizen of the US who plans to retire as an expat in the other country, or a non-US citizen?
– user662852
5 hours ago
@user662852 non-US citizen
– JonathanReez
5 hours ago
Is there something that prevents you from keeping your funds in your 401k even if you move out of the country? Then, just take it out when you turn 59.5?
– Better Budget
3 hours ago
@BetterBudget lots of headache managing a fund in a foreign country, potentially
– JonathanReez
3 hours ago