After Tax 401K, Mega backdoor Roth & Fund Selection in தமிழ் (US Retirement Series

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After Tax 401K, Mega backdoor Roth & Fund Selection in தமிழ் (US Retirement Series - 3)

Рет қаралды 14,009

Investment Insights Tamil

Күн бұрын

Пікірлер: 71

@ramyamurali41 4 ай бұрын

Thank you for empowering women like me with a wealth of financial knowledge I didnt know I needed! sincerely appreciate your videos

@parimaladeepak4339 2 жыл бұрын

Thanks! Vijay. As usual wonderful information/content.

@cybrainx72 2 жыл бұрын

It is possible single earning paychecks can have reduced take home pay because of after tax contribution. But if you can sustain by selling your investments that is better.

@RajagopalSankaranarayanan 2 жыл бұрын

Sir very informative video. Didn’t know there is a after tax 401k.. eagerly looking forward to the next episode on IRA …

@anandsubramaniam37 7 ай бұрын

wonderful video. I keep coming back to these videos whenever I want clarity about 401K.. Awesome Job. Nandri #VijayMohan

@sathyaabn2406 2 жыл бұрын

as usual.. great explanation.. Thank you 🙏

@Jupiterplus 2 жыл бұрын

Just when I thought I had a good handle on 401k concepts, here he throws another one ‘back door Roth’😊

@cybrainx72 2 жыл бұрын

Backdoor Roth is different than Mega Backdoor Roth

@ksrengaram Жыл бұрын

Thanking you everyday for your life worthy advice on managing finance, investments and retirement, please share your insights on how/when to rebalance our portfolios and strategies that you know, so far i have never done rebalancing as i lack clarity on doing it, Keep doing this wonderful service to entire humanity, Keep Rocking VIJAY

@saravanankumar9501 4 ай бұрын

4:25 But its not mandate to max-out regular 401k before contributing to after-tax 401k rit? But why do you suggest?..im trying to undertand any consequence

@saravanankumar9501 4 ай бұрын

At what % are earning from roth 401k taxed ? Ordinary income tax rate? or Long term 15%?

@guruparan7510 2 жыл бұрын

Hi sir, can you give a detailed video on networth calculation ? Also if you have any simple sheets to estimate it? That will be great

@meganathankns6375 2 жыл бұрын

Expense ratio pathi clear video venun

@kaleelrahman1009 2 жыл бұрын

Sir can you please upload the video on explanation of Asset backed securities and mortgage backed securities....

@ramaganeshgovindaraju6536 2 жыл бұрын

Nice video.. initial 3 years i was doing all the mistakes you have mentioned . Anyway better late than never learning. Right now I am doing rollover so waiting for next episode.. thanks for your effort.

@seenur4998 2 жыл бұрын

Pls do video for sovereign gold bond with details

@harish.vishnumurthy 5 ай бұрын

Thanks, Vijay, for covering this, very useful. What are the restrictions on early withdrawal from 401k Roth? Can contributions be withdrawn without penalty, just like regular Roth IRA?

@InvestmentInsightsTamil 5 ай бұрын

Restrictions are same as regular 401K. But if you rollover your balance into a Roth IRA, then you can withdraw the rolled over amount in 5 years without any tax or penalty. Many use that strategy for early withdrawal of their retirement funds.

@quick-relaxation 2 жыл бұрын

Great ji..

@meganathankns6375 2 жыл бұрын

Happy to see the 1st view

@saravanavin3407 2 жыл бұрын

Hello sir, i used to watch all the financial information video.. I m hugh fan of u. Sir i want to know what are the schemes are available India which has compounding interest ?

@123ezhumalai 2 жыл бұрын

Sir indiala lower middle classkku insurance and pension plan pathi sollunga sir.

@leaswar Жыл бұрын

Hello Mr Vijay, First of all thank you so much all the content that you have been releasing in this channel. I have immensely benefited from the knowledge that you share. Quick question on whether to invest in a ETF or Mutual fund. For VG Total Stock Market Index, which is a better choice - VTSAX or VTI? I am leaning towards VTSAX as it will help me being a disciplined and forced investor with automatic monthly investment. At the same time I see that there is a steady move and growth of investing in to ETFs. Am I going to loose out on anything if I don't following this band wagon.

@InvestmentInsightsTamil Жыл бұрын

The expense ratio is bit less on VTI. Other than that both are essentially the same. Do whatever is convenient for you.

@RaviChandran-zs5dr Жыл бұрын

For 2023, RMD age is 73.

@prabagaran.s1285 2 жыл бұрын

Good Content

@saradhakannan 2 жыл бұрын

401 k video about post tax was informative. Would you share some tips on vesting RSU’s and when would be good to vest

@cybrainx72 Жыл бұрын

Vesting is schedule is decided by the Employer, unless you are in position to negotiate.

@smohan1650 2 жыл бұрын

Hai Mr.Vijay sir, how to invest in a US ETF, Index fund and Stocks from India? Please suggest the best platform and App. Thank you,

@sun-um4zm 2 жыл бұрын

What is the best investment or saving for my kid’s college education in USA.My kid will go to college in 10 years

@InvestmentInsightsTamil 2 жыл бұрын

Watch these 3 episodes: USA College expenses: kzfaq.info/get/bejne/p7ORhc9i3bbdiYE.html USA College Savings plan - 529: kzfaq.info/get/bejne/gth7ZM2GlZeqlaM.html Tax Saving Priorities in USA: kzfaq.info/get/bejne/pK-Fq8mEvavIeIU.html

@mohamedasfar9351 5 ай бұрын

Hi Vijay, I am 29 right now and I have never started investing. I am planning to enroll in 401K this week. My company's match is 3%. Should I contribute just 3% or max out to $23000?

@InvestmentInsightsTamil 5 ай бұрын

Watch this: Tax Saving Priorities in USA: kzfaq.info/get/bejne/pK-Fq8mEvavIeIU.html

@VIGNESHVICKY-et2ix 2 жыл бұрын

Is nifty bees better than nifty index mutual fund

@InvestmentInsightsTamil 2 жыл бұрын

Different format of the same index for different purposes. For long term investment, not much difference between both.

@meganathankns6375 2 жыл бұрын

Index funds for long term 50 years india la sollunga

@mahemaar7551 Жыл бұрын

Thank you for this series. Does the contribution to after tax open only after we reach the 401k maximum? For example, I would like to invest my bonus credited in January directly to the after tax- Roth route and later fulfill the pretax 401k max contribution by December. This would save me a few extra tax dollars.

@InvestmentInsightsTamil Жыл бұрын

You should be able to contribute to After-tax 401K before maxing out your regular 401K. Talk to your plan admin. But how does it save extra dollars for you? What is stopping you from maxing out your 401K early in Jan from bonus?

@mahemaar7551 Жыл бұрын

@@InvestmentInsightsTamil thank you sir. Bonus tax rate is a flat 22%. My marginal tax rate is above that. In January alone I won’t get more than $22500 in salary. So I wish to do after tax-Roth on my bonus in bulk and continue to do pretax 401k for the rest of the year and max out the $22500 by the end of the year. This way I can tap into low tax rate bonus into Roth directly and save all of $22500 high tax rate salary in pretax 401k.

@InvestmentInsightsTamil Жыл бұрын

@@mahemaar7551 It does not work that way. What you see as tax withheld in paycheck is not your final tax payment. All your salary and bonus will be added as part of your yearly income when you calculate the tax while filing taxes. It will end up as exactly the same tax rate regardless of whether it is coming from Bonus or your salary. Also, most of the companies give option to contribute the bonus into regular 401K as well. As long as it does not hurt your company's matching, you should be able to contribute your bonus into your regular 401K as well.

@tkatodc 2 жыл бұрын

pls give some information about bond index funds like VTSAX, VTI. Thanks

@InvestmentInsightsTamil 2 жыл бұрын

BND

@gunanaresh 2 жыл бұрын

How to decide where to invest first - between Mega backdoor Roth and 529? Is it right to say that we can withdraw contribution to Megabackdoor Roth without any penalty/taxes and use it for kids' education expenses? If yes, I think Megabackdoor Roth offers more flexibility in terms of how we use our money than 529, right?

@akc5247 2 жыл бұрын

529 has limited per each state, mostly around max of 300K lifetime limit. Backdoor Roth has no limits, until IRS decides to cancel the backdoor process.

@gunanaresh 2 жыл бұрын

@@akc5247 Thanks. Apart from being able to withdraw earnings without tax for education, is there any other advantage with 529 compared to Megabackdoor Roth?

@akc5247 2 жыл бұрын

@@gunanaresh Main thing is employer needs to be able to offer/ support your additional contribution on top of backdoor Roth (mega backdoor option). Many employers don't do that, which is why the 529 option is better in that case. 529 is again only state level, so there is no federall tax exemptions. Outside of that, no other advantages.

@RajRaj-jm6lo 2 жыл бұрын

Hi sir how to buy us market Mutual Fund

@InvestmentInsightsTamil 2 жыл бұрын

Check out Navi. They have both Nasdaq 100 and Total stock market index funds.

@srinathpadmanabhan 2 жыл бұрын

Hi Vijay, can you explain how we can take out 401k after coming back to India? What are the options we have if I am still with the same company and what are the tax implications

@InvestmentInsightsTamil 2 жыл бұрын

Check out Roth Conversion Ladder strategy here: www.madfientist.com/how-to-access-retirement-funds-early/

@saravanavin3407 2 жыл бұрын

Sir.. I use to watch all the financial information video. Sir i want to ask your advice and as it is very important for my daughter's future. So, kindly give best idea where should i need to invest money for 25 years that too in weekly sip. I want to invest Rs.1250 per week sir.

@InvestmentInsightsTamil 2 жыл бұрын

My recommendations are here: kzfaq.info/get/bejne/gcpzppZ2vK2upoU.html You can follow this for the first 15 yrs. For the last 10 years, you need to go easy on equity exposure and increase debt exposure.

@ispequaltonp 2 жыл бұрын

When doing the transfer from after tax 401k to roth 401k, understand need to pay taxes on any gains (at marginal rates) but if there are losses can they be deducted or offset against other capital gains

@gunanaresh 2 жыл бұрын

With automatic in plan conversion, the rollover happens almost instantaneously with little additional tax risks AFAIK.

@ispequaltonp 2 жыл бұрын

@@gunanaresh thanks. In my case it will not happen automatically and need to call in. And I can't split my investment choices between Roth 401k and after tax 401k. So either my default investment selection should be cash which is suboptimal for Roth 401k or I could incur a gain/loss on my after tax 401k when I actually do the transfer

@akc5247 2 жыл бұрын

Yeah, typically if you can do the minimum 6K in traditional and convert to Roth next day (basically the backdoor Roth) that would be best . If there is few dollars of dividends then you would.need to pay taxes for that as well, but that's still.pennies on the dollar.

@meganathankns6375 2 жыл бұрын

I have a doubt... I can invest monthly 500.. Should I go for Indian index funds or US stocks...long term only

@InvestmentInsightsTamil 2 жыл бұрын

Watch this: kzfaq.info/get/bejne/gcpzppZ2vK2upoU.html

@srisaran5234 2 жыл бұрын

🙏

@vadivelutamilcomedy9926 2 жыл бұрын

Thank you! Sir.. I have few questions. will this After TAX 401K ok for Indians who is planning to settle in India after retirement? what all are the tax implications. Kids may settle down in US. kids inheritance is possible FOR AFTER tax 401K.. or Creating a family trust or so for 401K plan?

@akc5247 2 жыл бұрын

Someone can correct me if I'm wrong, but I believe the inheritance portion may depend on how much you save - as long as it doesn't get to the lifetime gift contribution, you should be good. Of course, pre/post tax 401k would determine whether tax would be pre or post retirement. So that could be part of the probate process which they may need to go through.

@InvestmentInsightsTamil 2 жыл бұрын

After Tax 401K is no different from regular 401K for inheritance. Kids can inherit after our life. But remember, the inheritance tax is 40% for any amount over $60K for a non resident. If you are planning to settle in India without US citizenship, you will be considered as non resident and your kids have to pay hefty tax for anything over $60K. For a resident, that limit is $11.5M.

@vadivelutamilcomedy9926 2 жыл бұрын

@@InvestmentInsightsTamil Thank you! Sir.

@kumareshtk5432 2 жыл бұрын

Hello Vijay Sir … thank you for this video. My employer does not offer 401k. Can I invest in one of these?

@akc5247 2 жыл бұрын

Unfortunately no..

@keerthibalasundaram795 2 жыл бұрын

You can open & contribute to traditional IRA.

@akc5247 2 жыл бұрын

@@keerthibalasundaram795 that's correct. My answer was entirely on 401k side. You cannot contribute to 401k unless sole.properetorship in which case you can do 401k. If on visa working for employer, then no direct option to contribute to 401k if employer doesn't offer one.

@ispequaltonp 2 жыл бұрын

Can after tax 401k be transfered to Roth IRA?.

@InvestmentInsightsTamil 2 жыл бұрын

If the plan allows, Yes.