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Hello Fishes,
I left capegemini on 4th of Feb and I still haven't got my relieving letter as well as experience letter. I'm trying to access my capegemini portal from webvpn.capgemini.com but I'm not able to access that either. Please suggest me what should be done, my next employer is asking for relieving letter.
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Sorry OP, but that does not sound like a good idea. I anticipate that it would become a much larger headache in the future.
Doesnt sound like a good idea. If it's a traditional 401k, then he'll get the tax deduction, not you. If he doesnt leave the company, I don't think you can just withdraw the money before that. If he decides to contribute while still there, it would be difficult to differentiate the commingled funds. Best thing do is for you to be a good cousin and convince him how stupid it is to forgo $2100 a year in "free" money. If he is that hard up for cash, he can cash it out and pay 10% penalty and still be out on top.
If you really trust each other and want to do this, maybe simpler to set it up as a loan with some agreed-upon interest rate. That way if he wants to start investing more later he can do whatever he wants with the 401k without complicating the arrangement - and the money can stay in there long term which is the tax-efficient way to go.
...In other words if I pay him 3% of his salary, I will “own” his 401k until in future he decides to start his investing. He doesn’t plan to start in 3 years. Do you think it’s worth the hassle or too much work involving post-pre tax calculations etc.?
How would you segregate and keep track of the investments over time? Seems way too complicated
I was thinking to withdraw all the money and pay a tax on it before he starts.
Agee with others, it just doesn’t seem worth it. Out of curiosity, how much would your net gain per year be (I.e. how much is 3% of their salary)?
70k salary. Also forgot to add earlier that cousin is more than a brother to me. We have in the past shared the same credit card and paid off each other without any issue.
My question is more on any monetary gains vs the effort involved. We both agree that we shouldn’t leave any money on the table. But appreciate earlier responses which were absolutely spot on based on info I provided