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This is my first post ... so pardon for any mistakes. I recently became eligible for participation in company 401(k) plan. Great, I jumped with joy, but then I have a couple of questions.

I am working in USA on a H-1 Visa, which means I will be leaving the country at the end of 6 year term which is sept 2002. Let's say I start contribution in 401(k) now, and then at the end of sept 2002, (assuming I am not returning to USA) I'll have to withdraw all the money in the plan. What are the tax implications? I assume 20% tax withhelding, and 10% penalty.

If that is the case, then is it beneficial to continue to invest in CDs (as I do now) or still go for 401(k)? If I start ROTH IRA, would there be similar penalties?

I am really confused on this issue ... any help and insight would be tremendously helpful.

Hope you all have a great week ...
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