The common question among financial enthusiasts who choose to save each and every penny from day 1 is going to be should I max out my 401K while I am on H1-B visa? This question can be tackled in many different ways. Here are some scenarios that will suit your profile and decide accordingly
1) 401K return on investment and tax savings offers better return compared to other investments
It is to be noted that H1-B visa is a temporary visa that does not guarantee permanent settlement until you get to the point of receiving your green card. With movement of green card priority dates not so green it would be always better to do simple math. consider the following factors while making a plan
1.1) 401K return on investment - 401K is an employer sponsored tax saving instrument. You can open a solo 401K which happens to be associated with self-employment. IRA is something you can open on your own and your spouses name that can help you save total of $11000 per annum depending on your AGI and many different factors. 401K limits is set by IRS each and every year. As of 2018 you are allowed to save $18500 per year in your 401K. This limit set by IRS changes periodically. The amount deposited in 401K offers you
1) 401K return on investment and tax savings offers better return compared to other investments
It is to be noted that H1-B visa is a temporary visa that does not guarantee permanent settlement until you get to the point of receiving your green card. With movement of green card priority dates not so green it would be always better to do simple math. consider the following factors while making a plan
1.1) 401K return on investment - 401K is an employer sponsored tax saving instrument. You can open a solo 401K which happens to be associated with self-employment. IRA is something you can open on your own and your spouses name that can help you save total of $11000 per annum depending on your AGI and many different factors. 401K limits is set by IRS each and every year. As of 2018 you are allowed to save $18500 per year in your 401K. This limit set by IRS changes periodically. The amount deposited in 401K offers you
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