Everyone tells you to max your 401(k). Nobody shows you the math if you might leave the country. This calculator does: it takes the dollars beyond your employer match and compares putting them in a traditional 401(k) — then withdrawing either inside a transitional tax window abroad or as a full resident — against simply investing the same after-tax money in a brokerage account you can take anywhere. Every number is editable; nothing you enter leaves your browser.
What each dollar of extra contribution becomes
| Path | Pre-tax pot at withdrawal | Est. tax | You keep |
|---|
This models only the dollars beyond your employer match — the match itself is worth taking in every scenario. Assumptions: traditional (pre-tax) 401(k) vs. investing the same after-tax dollars in a taxable brokerage; a 10% US early-withdrawal penalty applies if you draw before 59½; treaty credit assumed so you pay the higher of the two rates on 401(k) withdrawals once a full destination resident; simplified — no dividends tax drag, fees, or currency moves. Numbers you enter stay in your browser.
How to read the result
- The employer match is not in this calculator on purpose. A 50–100% instant return survives any move; take it in every scenario. This tool is about the next dollar.
- The transitional window is the biggest lever. India’s RNOR status (roughly 2–3 years after return) can make 401(k) withdrawals taxable only at low US non-resident rates. If you can time withdrawals inside it — and you’re past 59½, or accept the 10% penalty — the 401(k) usually wins comfortably.
- Withdrawing as a full resident flips it toward brokerage when your destination’s slab is high and its long-term capital-gains rate is low (India: 30% slab vs. 12.5% LTCG). Then the 401(k)’s tax deferral is worth less than the brokerage’s gentler exit.
- The early-withdrawal penalty is the silent tiebreaker. Below 59½, 10% comes straight off the 401(k) paths. If you’re young and leaving soon, that alone can hand the win to brokerage — unless you’re willing to leave the 401(k) invested until 59½ (set the “years invested after you leave” higher and see).
What this doesn’t model (and why it still helps)
Real life adds dividend tax drag in brokerage, plan fees, currency movements, changing tax laws, and your destination’s specific treatment of US retirement accounts — which is exactly why the number to take from this tool is not “$X” but “which path wins, and how sensitive is that to my timing?” Bring that question to a cross-border CPA; you’ll get a far better hour out of them.
Go deeper: The H-1B Holder’s Complete Guide to the 401(k) · Roth IRA if you move back · The Leaving America Checklist.
Education, not advice. WealthyFied publishes general financial education for immigrants in the US. Nothing here is personalized investment, tax, or legal advice — your situation is unique, so run big decisions past a qualified cross-border professional. Some links are affiliate links; see our disclosure.