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Hi All, I wanted to know how is EXL Hyderabad location. In terms of work life, job security, Pay etc. Currently my negotiations are in progress. They are offering me the Hyderabad location with 20LPA Fixed for 6 YOE. Project is UK Banking Related.
Any inputs are welcome.
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If you don’t continue, you are foolish. It’s a tax free HABIT that you want to cultivate. I started day one in my career, and I am so happy I did.
Always put in as much as you can as its tax advantages are huge. Outside IRAs are post tax dollars so are more expensive dollars. The match is nice to have but don’t throw the baby with the bath water.
Continue, because as I understand it, you can contribute a big percent of your salary tax free that you can’t to a different option outside work.
For example when I had 401k I could contribute 21k a year to it. My IRA outside work, I can only contribute 6k a year.
Continue with it. Because every dollar you put in is tax free, and you can put in about $18,000 a year. The five year matching period is mean, as most company matches vest after three years, but even if you walk away before the five years, the tax advantage is worth it.
It is not that I would stop continuing to put money aside for retirement, I just wasn’t sure if there were better options since I won’t be able to get my companies match since I can’t stay here for 5 years since I am so young in my career.
APD1 has a point- you pay tab in the 401k money when you withdraw later on- hopefully when you’re in a lower bracket
OP it’s your best option. Outside IRAs are tax advantaged as well, just can’t contribute as much, as others have said. Also, check the rules, you may get a percentage of the company match, just not 100%, if you leave early
Hey OP, I think this is your best bet for retirement saving. When you leave your current job, you can roll over your 401k into an IRA, and start a 401k with your new employer. As you move up the ladder, you’ll repeat the process, opening a 401k account with every job. When you leave, you roll them into your IRA.
401ks are not tax free. They are tax deferred. Huge difference!
You mean you 100% vest after 5 years?
OP, look up a blog called the Mad Fientist. He has a post called Mega Backdoor Roth. It’s about what you can utilize after your 401k. Might be useful for you
On the 5-year vest, you ladder up 20% each year- ie. year 1 is 20%, year 3 is 60% year 5 100%
Hey APD1, the money you pay into a 401k is tax free. You don’t pay tax on the dollars that you put into one.