{ "media_type": "text", "post_content": "Moving out of the US for 5-6 years, does it make sense to keep the 401k as is or withdraw it and pay the fine and penalty as it could still be used as a 25-30% down payment for a house ? The balance is under 70k right now. I will be moving back after 5-6 years.", "post_id": "61ef2077ae9111002c27f284", "reply_count": 12, "vote_count": 1, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter", "feed_type": "bowl" }

You are currently posting as works at EY

Moving out of the US for 5-6 years, does it make sense to keep the 401k as is or withdraw it and pay the fine and penalty as it could still be used as a 25-30% down payment for a house ? The balance is under 70k right now. I will be moving back after 5-6 years.

1 reactions

4 months

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works at

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You are currently posting as Manager 1

Do not withdraw it whatever you do. I lived overseas for 9 years, and you can take all that money compltely tax free if you play your cards right. You heard that right....dont pay a penny in tax. Here is what I did: 1.) Roll that 401k into a traditional IRA 2.) Leverage your foreign earned income exlusion each year against your salary. 3.) Depending upon your salary, the foreign exclusion may cover all your salary, and if it does, you got your standard deductions as tax free income. 4.) Each year roll over the amount of your standard deduction ($12.5k if single or $25k if married) from your traditional IRA to a ROTH Ira. Over 6 years you should be able to convert all $70k of that account to a ROTH by applying the income against your yearly std deduction. I did this over 9 years abroad on almost $100k in an old 401k. As long as you keep the $ in the roth until you hit 59.5 yo, then you have that money totally tax free.

3 reactions

4 months

You are currently posting as EY

Thank you!

4 months

You are currently posting as Accenture 1

Chief

If you are moving back, don’t withdraw unless you can’t do without that money. If you are switching employers, you can roll it into an IRA

2 reactions

4 months

You are currently posting as Managing Director 1

Chief

Keep the 401k. Wiping out 70k in retirement savings and paying penalties to do it is a bad idea.

2 reactions

4 months

You are currently posting as Accenture 2

Let it coast Look up Coast FIRE Not that you have enough in there. But it's a start.

4 months

You are currently posting as Managing Director 2

Do not withdraw!

4 months

You are currently posting as Senior Manager of Financial Reporting 1

Wow, cool. So just to confirm my understanding, you basically pulled ~ $12k a year out of your 401k (turned traditional ira turned roth ira) tax free over the course of couple years.

4 months

You are currently posting as Manager 1

Correct

4 months

You are currently posting as Deloitte 1

Your 401k is for retirement, not a down payment. Why would it matter where you are in the world? Don’t touch it.

4 months

You are currently posting as works at Accenture

Is our 401k match with Accenture on a vesting schedule? Can't find this information on the live well website

1 reactions

You are currently posting as works at EY

How do you guys invest your money? Max 401K?

2 reactions

You are currently posting as works at EY

Only 42 more years until I retire!

18 reactions

You are currently posting as works at Deloitte

Can anyone please explain Deloitte policy on 401K?

1 reactions

You are currently posting as works at Deloitte

What are some of the investment options that I can use park extra money(after major investments) every month. I am already doing 401k, index funds through betterment. Exploring bitcoins as an option.

4 reactions

You are currently posting as works at PwC

Where do you all put your 401k and wealth builder funds ? % in large caps , % mid caps , bonds.. ? And what's been the avg rate of return ?

1 reactions

You are currently posting as works at EY

Man we got hosed with this new pension scheme.

4 reactions

You are currently posting as works at Boston Consulting Group

I've seen various threads where people (some big 4?) have referred to their companies' pensions. Can someone explain this to me? Why would anyone in this day and age offer pensions (versus 401k etc)?

3 reactions

You are currently posting as works at KPMG

How much do you contribute to your 401k?

2 reactions

You are currently posting as works at EY

Want to start investing. Already maxing out 401k, any recommendations for a rookie looking to start investing?

4 reactions

You are currently posting as works at Accenture

Offered an industry job. 15% more,15% year end bonus, 401k matching. 100% Work From Home. 0% travel. Never have to worry about utilization again. Am on bench, idk for how long, jump at the chance?

37 reactions

You are currently posting as works at PwC

If I had a dollar for every time I heard __________ in a team meeting, I would be able to retire from consulting...

3 reactions

You are currently posting as works at Senior Associate

How many of you max out all tax-advantaged space, i.e. 401K, Roth, and HSA, and is it doable to live on what's left?

2 reactions

You are currently posting as works at Accenture

BCGers: do you get a 401k match beyond the PSRF? If so, how much? Asking for a friend

2 reactions

You are currently posting as works at EY

Take the time to talk about your career during your comp discussion. Also Look at big picture and all in benefits, including oft overlooked pension.

3 reactions

You are currently posting as works at Bain & Company

But seriously... I want to retire at 45. Any $$$ saving tips? Please and thank you.

4 reactions

You are currently posting as works at Deutsche Bank

Apparently when you retire from the NBA, you start a VC – nicely played Kobe Bryant, nicely played.

6 reactions

You are currently posting as works at PwC

PwC folks. Bonus time is coming. Are you adjusting your 401k and how?

You are currently posting as works at PwC

PwC people: is there a way I am able to download my 401k information into Quicken?

3 reactions

You are currently posting as works at Deloitte

Anyone have experience with betterment or wealthfront? Looking to put in around 10k to begin my investing journey. Finally Maxed out Roth and feel good about 401k, and want to get started in investing

1 reactions

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Post for likes

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Testing at 9am EST

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You are currently posting as works at iTechArt Group

Post for likes

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You are currently posting as works at UCSF Santa Rosa Family Medicine Residency

Part of the crowd. The briefcase doesn't show in post details though.

1 reactions

You are currently posting as works at Microsoft

New posts and

You are currently posting as works at PreMark Health Science

Just moved to the city any job postings in the lab arena?

1 reactions

You are currently posting as works at Boston

About to give my first interview at my old college for first rounds. Any tips, best practices? Ex: cases, or red flags to look for when talking to applicants?

1 reactions

You are currently posting as works at Deloitte

Best credit card, go

2 reactions

You are currently posting as works at Boston Consulting Group

Those of you that are married, at what age did you meet your SO? And in what setting (e.g., business school, undergrad, work etc)?

19 reactions

You are currently posting as works at Bain & Company

Thank goodness for Sunday night football. Makes doing expense much more endurable!

5 reactions

You are currently posting as works at Strategy&, part of the PwC network

S& Seniors, what % bonus of my salary can I expect for a middle tier ranking average? My CRT discussion isn't for another 10 days.

You are currently posting as works at Boston

When a red flagged client email appears in your inbox with one word: UPDATE

2 reactions

You are currently posting as works at KPMG

Any of you take #2 with your suit jackets on?

4 reactions

You are currently posting as works at EY

Got an interview coming up with Oliver Wyman FS. Any thoughts on the firm? Culture, type of work, lifestyle, etc?

4 reactions

You are currently posting as works at Deloitte

Need y’all’s help for favorite consulting menswear brands for dress pants and button ups! My husband is transitioning from military to consulting. Looking for a few shirts and pants that are middle of the road, not cheap mall brands but not super investments. He’s average body type but 6’3 so need long pants.

1 reactions

a month

You are currently posting as works at PwC

Does anyone else just genuinely not care anymore? I’m having a harder and harder time pushing myself to do the simplest of tasks.

42 reactions

a year

You are currently posting as works at Accenture

That awkward moment when you're shooting the shit on a conference call, joking about our near alcoholism, and then a client joins 17 minutes late and just listens....

7 reactions

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Moving out of the US for 5-6 years, does it make sense to keep the 401k as is or withdraw it and pay the fine and penalty as it could still be used as a 25-30% down payment for a house ? The balance is under 70k right now. I will be moving back after 5-6 years.

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