If you aren’t a US citizen and plan to return to your home country in a few years, does it still make sense to max out 401k ?

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You should at least put the min required for your company to match. That’s free money for you. Plus, things change and you might end up staying here.

If you are absolutely sure to leave the country and would rather have cash versus waiting for 40 years to withdraw then I’d not put in any money. A lot of rules can change in 40 years.
The second part of my comment is based on your personal situation. Hope this helps

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It depends on your definition of “few years”, currency fluctuations , inflation in your home country, tax implications and interest rate / equity market returns in your home country

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I’d start moving cash home.

No, it will be a foreign investment that you won’t have access to until you’re 65

Not correct, you do have access just that you would have to pay a percentage since you may be withdrawing it before retirement age

Sure if you want to pay the 10% penalty on top of the taxes owed....

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Yes. Even if you move back to your home country, you can withdraw your 401k over a period of time in the lowest tax bracket, since you’d be making no income in US. Google it.

Yes, penalty would still apply along with the lowest Federal tax (10%). Still better than the 24% Fed tax that’s applied right now. There’s also the workaround of converting 401k to Roth.

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Depends on the match. You can withdraw early but you will be liable to pay a 10% penalty + the entire value taxed as income. Also heavily depends on your employer vesting period. You can run the numbers to see when it pays off to max out, but typically for ease you should move it back home.

Yes, it absolutely does

You may be able to claim financial hardship the year you are relocating home if you have no or limited income and avoid the 10% penalty. Research it. There are many resources online.

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