Hi, I am on H1b visa and was working with Company A till last week. I was contributing to 401k as there was a match of 30% from the employer. Now I have switched to a different company B which also has a match of 50% (but the cap is less which won't matter in this case).
I am planning to return to my home country India in two years and will definitely withdraw the 401k funds (I'm yet to work on a strategy).
Now I am researching options for my 401k fund with my previous company A: whether to rollover to new company's 401k, or an IRA.. or just leave it there.
Any of expert thoughts, suggestions will help me make a decision.
Here are some things for you to consider.
1) You don't need to rollover your Company A, You can keep the funds there until you decide whether you want to rollover to Company B. 2) You can contribute to Company B, but the maximum contribution is $18,000 combine between companya and company b. You should contribute as much as you can to Company B to take advantage of the match. It is like receiving additional compensation. 3) You can roll over Company A 401k funds to Company B's 401k or you can roll over the funds to an IRA. Further, when you leave Company B you can also roll over those funds to an IRA. Factors to consider are the quality of the funds in the 401k and the expense ratios on the funds. I hope this helps.
If you would like to discuss the specific details, contact me for a more in depth discussion of your options. Chris