I am 25 and working in the US on an H-1B visa. My employer offers a 50% 401(k) match up to $12,250 a year. I am currently maxing it out, but I might leave the US and withdraw the money in 5 to 10 years. Given the early withdrawal penalties and taxes, does it still make sense to max out my 401(k), or should I only contribute enough to get the full match and invest the rest elsewhere?
Max your 401(k) if $12,250 is the employer’s match cap; if $12,250 is only the match-eligible part of your own contribution, contribute that first and keep unmatched, near‑term money in a taxable account you can use without a retirement‑plan penalty.
You don’t have to destroy the tax shelter just because you may leave the U.S.; leaving it or using a direct rollover usually avoids immediate tax and penalties. A fully vested 50% match also goes a long way—even after penalties, employer dollars typically leave you ahead versus no match.
