I too wanted to ask the same. I remember a video in your channel where your son has presented about converting 401K to IRA to Roth ... Please explain in detail

Hey Bala.

@@shri2947 yes

There is no reason for us to analyze into whether someone else like 401K or not. We have to see whether it is going to serve our purpose or not. Market crash - we should have less exposure to equity as we approach retirement age.

If you have maxed out Pretax 401K, then you cannot contribute to Roth 401K. Your total 401K contribution of Pretax + Roth 401K cannot exceed $22,500/year. You can still contribute to After tax 401K upto a maximum of $66K (Total 401K contribution allowed per year including employer match). But contributing to After Tax 401K is useful only if you can do inservice distribution. If that option is not available, it is not worth contributing to After Tax 401K.

You mean how to choose funds? Watch this: kzfaq.info/get/bejne/d62pisZ4lpaVd6c.html

@@InvestmentInsightsTamil Thank you very much for your help to understand better

I will cover that in the next episode.

@@InvestmentInsightsTamil Thanks. They mostly put the 401K money in default Vanguard plans, like 2060. Not sure if they are different from those that you have mentioned in your investment series and are worth going with.

@@HariharanLovesCrist It is different. I will explain those in next episode.

Waiting 👍

Neenga enna kekkureenganu puriyalaye...

Can't wait for next episode? 😉

@@InvestmentInsightsTamil sure😁

Return Rate Calculation: kzfaq.info/get/bejne/mr6gfKie3pu9m4E.html

Capital Gain Tax Explained: kzfaq.info/get/bejne/b7mpa9h6s9CtY3k.html

@@InvestmentInsightsTamil Thank you Vijay

🤣

Those are old unpublished videos. Ignore it. The 5 you see are the actual ones.

As I said in the episode, employer contribution does not come under the $20,500 contribution limit. Only our contribution comes under the limit.

They are very similar to 401K. I don't think I will have enough time to squeeze in those. What do you like to know about those? BTW, you can just call me Vijay. :) www.forbes.com/advisor/retirement/403b-vs-457b/ www.experian.com/blogs/ask-experian/403b-vs-401k-whats-the-difference/

For international address in the account, many brokerages do deduct 30% tax automatically. But you should be able to claim it back when filing tax return. Yeah, you do need to file a tax return for the year you are withdrawing the money. The withdrawal is considered as your income for that year.

You should have at least 40 credits to take advantage of SSN after retirement. If you do not have 40 credits, can't really do anything about it.

@@InvestmentInsightsTamil thanks for your reply.. please guide me how to find my current credits no ?

Watch this Bear Market Investing episode: kzfaq.info/get/bejne/bNJyqa17tLnNlZc.html

Yes, it is a good idea to convert into Roth IRA. After 59.5, there is no tax for withdrawal in US from a Roth account. In India - I am not sure. You have to go with your CA's guidance.

You dont have to pay tax in india since the money you contributed is already taxed . There is no double tax in india

Thank you

What about the capital gains though? Would that be taxed?

Not all financial institutions support foreign address. If your brokerage supports foreign address, like IBKR or Schwab, you have the option of leaving it here. Most other brokerages will freeze the account.

@@InvestmentInsightsTamil what happens to 401k then? Mine is in Fidelity

There are many indians whoever i talked to had ideas to go back to India including me, but not sure how far true thats gonna happen. However, in that case what should we do with investments made in different brokerages like Robinhood, Fidelity? Should we cash out irrespective of profit/loss before leaving US

@@deepuprakash2430 Yes, better to cash out or move to a brokerage that supports international address.

@@deepuprakash2430 You have to check with Fidelity. If they do not support international address, move the assets into an IRA that supports international address, like Schwab.

Watch these 3 episodes: Stocks Portfolio: kzfaq.info/get/bejne/gcpzppZ2vK2upoU.html Index Fund Investing: kzfaq.info/get/bejne/iNRyo7Ne0a6yl6s.html Risks in Index fund investing: kzfaq.info/get/bejne/a5l5Y7tlmLbTh4U.html

It will be covered in coming episodes.

@@InvestmentInsightsTamil thank you so much ! Will wait 😀

It is in my To Do list.

@@InvestmentInsightsTamil Waiting for this Vijay guru :)

We can either leave it here till our retirement or withdraw using Roth conversion ladder strategy: www.madfientist.com/how-to-access-retirement-funds-early/

@@InvestmentInsightsTamil ok sir hope you cover this in this series episodes 🙏

It is just an example managed fund. That is all.

When we are not sure when we are going to go back, it is better to start contributing to 401K. There are ways to minimize the penalty and tax impact when we leave.

⁠​⁠@@InvestmentInsightsTamil Hello, sir. Can you please explain the ways to minimize penalty and tax impact in one of your videos?

Just convert to Roth IRA and you will have more options to pick what you want to invest in

No. You will not be able to contribute from there in India. As Chai suggested, better to move your 401K assets into an IRA. I will cover that in coming episodes.

You can contribute up to 25% of your earnings into SEP IRA. Check this out: www.nerdwallet.com/article/investing/retirement-plans-self-employed#SEPIRA

Check the video description.