401k vs roth IRA for someone new in the US

Submitted by doiwannaknow89 t3_100563d in personalfinance

I am foreigner working in the US on a visa (not an h1b) and i have no idea about the 401k or the roth. Any basic advice for someone on these things? Or is there a wiki or a youtube channel that explains these things for the naive? Appreciate any help, i can provide any extra info needed

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ku91fanatic t1_j2flk9s wrote

The primary difference is taxation. Anything that is designated as a "Roth" is funded with money that has already been subjected to taxation by the government. All other retirement accounts are funded with money that has not been taxed by the government, YET.

The government will get their taxes from those pre-tax accounts when you withdrawal the funds in retirement.

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plowt-kirn t1_j2foalh wrote

> Any basic advice for someone on these things?

Follow the Prime Directive: https://www.reddit.com/r/personalfinance/wiki/commontopics

> Or is there a wiki

Yes, this sub has a detailed Wiki.

https://www.reddit.com/r/personalfinance/wiki/

> I am foreigner working in the US on a visa (not an h1b) and i have no idea about the 401k or the roth.

A lot will depend on whether you intend to retire in the US or if you plan to retire elsewhere. Many countries don't recognize US Roth accounts. See: https://creativeplanning.com/international/insights/expat-roth-conversions-qa/

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