A H-1B tech worker‘s post on Reddit, where she plans for the future amidst layoffs and visa uncertainties, has gone viral. In her post, she asks for advice on how to increase her net worth and liquid assets in case of sudden job loss.
Her PERM was filed this month for an EB-2 visa, but given the current situation in the US, she is making backup plans. Commentors on Reddit have given their advice on how best to save up, as losing one’s job on H-1B has become a near-inevitability right now.
A vast majority have adviced maxing out one’s 401k to save up to 40% on taxes. Even if a worker returns to India later, they can liquidate the money slowly, rather than having wasted it for years on tax.
Even with a 10% penalty on early withdrawl, and income tax on a year with no income, more money will be saved than lost. Moving back to India, however, incurs a 30% witholding on 401k withdrawls.
To avoid this, many users suggest using IKBR.
This is an Interactive Broker’s account that allows users to buy Irish UCITS funds. These are low tax Europe based funds that let users keep their funds without massive taxes.
There are also multiple forms, like the W8BEN for NRIs in the US, as well as the Form 10EE in India. This form delays Indian tax until the money is actually withdrawn.
With the current immigration situation in the US, planning ahead to a potential return to India is a must. This allows a comfortable safety net in case of sudden job loss or forced return.
