Singapore Expats Forum

Re-apply PR for spouse 2nd time

Relocating, travelling or planning to make Singapore home? Discuss the criterias, passes or visa that is required.
ututu
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Postby ututu » Tue, 08 Jan 2013 11:49 am

vishalgupta2 wrote:Good point here.

As for US in the US most of the times 401k is optional and is slightly more complicated than Singapore CPF.

401k is heavily used as a tax saving and investment tool in USA which is different from Singapore. There also are ways to withdraw it.

Those of us who have worked in US know that US also has a FICA tax aka social security tax. You pay social security tax in US and it as name suggests pays for your SS benefits. All the FT in US is required to pay FICA but can't get anything back unless they become citizens (which as a PITA anyway).


There is a thing called SS Totalization agreements, not sure if it applies to India but if agreement is there, shouldn't be a problem, key is to contribute FICA for 10 years as SS eligibility rules will still apply.

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zzm9980
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Postby zzm9980 » Tue, 08 Jan 2013 12:04 pm

ututu wrote:Why would anyone leaving US withdraw IRA/401ks, if anything by 401s can always be rolled over to IRA and then converted to Roth at correct time to minimize tax hit.


Because if you re-read my post, you'll see that I said that those leaving the US and giving up their visas or green cards are probably not paying that income tax on the way out anyway. They have no 'tax hit' to minimize.

vishalgupta2
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Postby vishalgupta2 » Tue, 08 Jan 2013 5:12 pm

ututu wrote:
vishalgupta2 wrote:Good point here.

As for US in the US most of the times 401k is optional and is slightly more complicated than Singapore CPF.

401k is heavily used as a tax saving and investment tool in USA which is different from Singapore. There also are ways to withdraw it.

Those of us who have worked in US know that US also has a FICA tax aka social security tax. You pay social security tax in US and it as name suggests pays for your SS benefits. All the FT in US is required to pay FICA but can't get anything back unless they become citizens (which as a PITA anyway).


There is a thing called SS Totalization agreements, not sure if it applies to India but if agreement is there, shouldn't be a problem, key is to contribute FICA for 10 years as SS eligibility rules will still apply.


India is not in the list of countries with SS Totalization agreements.


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