I will move in July!
There is indeed something like the HSA, in the Healthcare brochure I received, they actually call it a Flexible Spending Account and it is capped at 2500$ per year. However, it is written "Be sure to plan carefully when determining how much to contribute to either FSA. Any unused balance at the end of the plan year will be forfeited.", I do not think I'm going to max it then... The Healthcare plan max-deductible is 1000$ in network (6k out) for a single.
What I meant by asking if I should put maximum into 401k was actually if I should put as much as I can, not just matching, but I did not realize that there is a cap.
I looked a bit deeper and if I am right, it seems that 401k and IRA/Roth IRA are capped like this:
- Around 20k/year for the 401k
- Around 6k for Roth IRA
I was wondering:
- Contributing to a traditional IRA is tax-deductible but it seems that as a single, it is only available for single with less than 74k, my gross income is above but my taxable income after 401k contribution should be around 50k if 20k cap for 401k doesn't include company matching (54k otherwise), does it mean I should go for traditional IRA instead of Roth?
I will indeed see how my expenses go in the US but I am pretty sure reaching the cap of both 401k and IRA will be achievable. I have always been used to live frugally, I have looked for houses/condo for rent on Zillow and there is a lot of Houses less than 5 miles from my future workplace, I will be able to commute by Bike, at least when it is not extremely low temperatures.
I have assets in France (9k€ in share/bonds funds at 2% interest after inflation at best) so I will definitely look taxes and PFICs up, though I'm thinking about transferring the money to the US because the interest rates are much higher.