Introduction of American immigrant pension system: 40 1K

# American Immigrants # Introduction When it comes to the American pension system, it is nothing more than social insurance benefits, government pensions, and pension accounts in which individuals participate in contributions. Among the three, the equivalent of 40 1K is 198 1 the tax-deferred retirement account plan established in the United States, which is only applicable to employees of private companies and provided by the company. As long as they are employees of the company, they can participate. Let's introduce the 40 1K of the American immigrant pension system. Welcome to read!

American immigrant pension system: 40 1K

At present, it is the main form of providing for the aged in the United States, and it is also the mainstream trend. According to the statistics of American Pension Fund Association, 75% American families close to retirement age have a 40 1k retirement plan, so why does the 40 1K plan occupy such an important position in American pension?

1. What is the 40 1K plan?

American pensions are generally divided into two parts. One is social insurance, which is equivalent to the old-age insurance in China, and guarantees the basic old-age life for employees after retirement. The other part is the enterprise's pension plan, and the 40 1K plan is only an important part, which is equivalent to the enterprise annuity plan in China. The 40 1K plan in the United States is quite different from the pension in China. As for the comparison of advantages and disadvantages, there are different opinions.

According to this plan, the enterprise has set up a special 40 1K account for its employees. Like China's old-age insurance system, employees take a certain percentage of their salary and deposit it into the pension account, and enterprises generally deposit the corresponding funds into the account according to a certain percentage. Both parties share the burden and deposit it in the employee's personal account, forming a pattern in which both employers and employees share the retirement benefits.

If you are an employee of the company, the funds you invested in the 40 1K account and the funds invested by the company during your work are your pension, and you can receive this money from the retirement account at the age of 59 and a half. The United States has strict tax regulations, and receiving pensions requires paying taxes to the government. Therefore, retired workers generally receive pensions year by year. In order to avoid taxes, they will not withdraw all their pensions at once. In addition, for employers and employees, all the money invested in 40 1k retirement accounts does not need to be declared. Only when employees receive it at a specified age can they be regarded as income, and they need to declare personal income tax. After employees who work in private enterprises retire, enterprises do not need to pay pensions to employees, which can reduce the expenditure cost of enterprises. Whether to join the 40 1K plan depends entirely on one's own wishes, and one can choose freely.

Second, 40 1K tax avoidance law

The money deposited by employers and employees in the 40 1k account is pre-tax income and does not need to be declared. Employees who receive income at a specified age are required to declare personal income tax to the IRS. This is the American policy of delaying tax payment. If your income is high and the tax rate is high, then this method can still bring you great benefits.

For families with relatively rich financial resources, it is certainly a better way to invest more money in the 40 1k retirement plan, but the investment exceeding the limit is taxable. There are also certain restrictions on the total annual investment.

Three. 40 1K investment ratio of individuals and enterprises

40 1k retirement plan is flexible for employees in enterprises in terms of how much money they invest each month. Employees can deposit an acceptable proportion of their income into their accounts every month according to their actual economic situation. If a person earning $5,000 a month invests 10% in a retirement plan, it is $500, and the annual investment can reach $6,000. However, there is an upper limit on the amount that employees can invest in a 40 1k retirement plan every year. The upper limit is 20 16500 USD. If you are 50 years old and your 40 1k retirement plan can be increased by another $5,500 a year, then the funds invested in the retirement plan can be $22,000 a year.

The capital invested by the enterprise for the employee 40 1k retirement plan is 3% of the employee's annual income. In order to ensure that the government's tax revenue will not be lost too much, the IRS stipulates that the 40 1k retirement plan invested by employers for employees should not exceed 6% of employees' annual income.

So according to the above regulations, we can roughly calculate that if your annual salary is $654.38 million and you are 50 years old, you can invest 16500. At the age of 50, you can add $5,500 to make a total of $22,000. Employers can invest $6,000 at the interest rate of 6%. After one year, your 40 1k retirement plan will have $28,000 in cash. If you retire at the age of 65, even if you invest in a 40 1k retirement plan at the age of 50, the funds invested in 15 are not considered as investment income, and the total principal is $420,000. Anyway, is the $420,000 pension an enviable piece of fat?

To sum up, the American 40 1K pension insurance system has become the mainstream of American pension insurance, which can not only avoid taxes reasonably for enterprises, but also reduce personal tax payment, benefiting the country and the people. At present, Europe, such as Germany, France, Spain, Hungary and other countries also have the same pension insurance policies, and they are competing to follow suit. This system will definitely penetrate into the Asian old-age insurance system in the near future and truly provide for the elderly.

Further Reading: Types of American Immigrants

The first category: the conditions and ways for relatives to immigrate to the United States. American relatives immigrants account for the vast majority of all immigration categories. Many people in the United States have eligible relatives who are citizens or green card holders, so they can submit immigration applications to the US Immigration Service and get a US immigration green card. According to the identity of the applicant and the distance between relatives, relatives can be divided into five categories (closest relatives: FB 1, FB2A/B, F3, F4). Relatives who can apply for a green card include spouses, parents, children, brothers and sisters of American citizens, spouses and unmarried children of green card holders.

The US government gives preferential treatment to the next of kin (spouse, parents, unmarried children under 2 1 year) of American citizens, and there is no quota limit every year. In the whole application process, only the government has the necessary processing time, and there is no waiting time in vain.

The second category: the conditions and methods of professional hiring immigrants to immigrate to the United States.

The conditions and methods for professional employment immigrants to immigrate to the United States are employment-oriented professional immigrants, and there are five priority categories: (EB- 1, EB-2, EB-3, EB-4, EB-5).

The first priority of EB- 1 includes three categories: EB- 1A special talents, EB- 1B outstanding professors or researchers, and EB- 1C executives of multinational companies. The first thing is that there is no need to prove a shortage of labor and there are plenty of immigrants.

The second priority of EB-2 includes two categories: unconventional national interest exemption (NIW) and conventional EB2 work permit PERM. NIW does not need jobs, labor shortage certificates and employer support. For conventional EB2, the employer must prove the shortage of labor. The work of an employer should require at least a master's degree or above, or a bachelor's degree plus five years of work experience.

The third priority of EB-3 includes two categories: applying for a green card requires a bachelor's degree or at least two years of technical experience and is classified into a small category. Those who do not require academic qualifications and skills are classified into another subcategory. EB-3 employers also need to prove labor shortage.

EB-4 fourth priority: religious visa. This requires church organizations to come forward. Beneficiaries should serve the Ministry of the church.

The fifth priority of EB-5: EB-5 investment immigrants. Meet three conditions: a commercial entity with an investment of US$ 6,543.8+0,000 or US$ 500,000 in the United States; Create or increase 10 full-time jobs for American workers. Investment funds should prove their legal sources.

There are fixed quotas for the types of immigrants based on employment. When demand exceeds supply, plans will be made. EB- 1, EB-4 is not booked globally. EB-2 has serious scheduling for people born in China and India, but not for people born in other countries. EB-3 used to be very full, but recently it has been lined up quickly. At present, the schedule of EB-5 investment immigrants is getting worse and worse, and the later the application, the longer the schedule.

The third category: the conditions and ways for humanitarian immigrants to immigrate to the United States.

Humanitarian immigration to the United States is another way to immigrate to the United States besides occupation and relatives. This way is mainly for applicants to apply for immigration to the United States through other humanitarian channels, including seeking asylum. The United States will provide a safe haven for those who are persecuted in their own country for specific reasons and have real fears. There are five acceptable reasons for humanitarian immigrants under the framework of American immigration law: persecution based on race, persecution based on religion, persecution based on nationality, persecution based on political views, and persecution based on belonging to a specific social group. In the category of humanitarian immigrants, asylum applications should be based on persecution, not general unhappiness, persecution should be based on the above five reasons rather than arbitrary retaliation, and applicants should have real fears.

The fourth category: the conditions and methods of lottery immigration to the United States.

The conditions and methods of immigration to the United States are the simplest way to immigrate to the United States. The official name of lottery immigrants is diversity visa, which aims to increase the diversity of the domestic population in the United States. For countries and regions with less than 50,000 immigrants to the United States in the past five years, 50,000 places are randomly reserved every year. In view of the large number of immigrants from Chinese mainland to the United States, compatriots born in Chinese mainland obviously don't have this opportunity. However, people born outside the mainland, including those born in Hongkong, Macau and Taiwan Province Province, can still register for the lucky draw. If your spouse meets the requirements, you can also participate in the lucky draw. Although it is a diversified visa, it is also eligible for lottery winners, but compared with the above requirements of professional immigrants, it is much simpler. Lottery winners need to have a high school education or more than two years of technical work experience.

The fifth category: the conditions and methods of immigration to the United States.

Soldiers are the foundation of national defense, and the conditions and methods for immigrants to join the army and immigrate to the United States are also a major feature of the United States. The United States has great respect for military personnel, and countries that give preferential treatment everywhere allow applicants to join the army and apply for a green card in the United States. Military immigrants can not only get a green card quickly, but also be naturalized directly and quickly, and there is no time limit for residence.

The sixth category: the conditions and methods of special bill immigration to the United States

The conditions and methods of immigration to the United States by special bill refer to the immigration status or welfare granted to the United States by legislation of the United States Congress. The bill sometimes applies to specific groups of people (for example, people who arrived in the United States before a certain month) or specific people. Every few years, the United States will alleviate the problem of illegal immigration through Amnesty. The president of the United States or the congress of both parties should also win public support through Amnesty.

The seventh category: the conditions and ways to immigrate to the United States by birth.

The conditions and methods of immigrating to the United States by birth refer to the automatic acquisition of American citizenship by pregnant women from other countries and newborns born in the United States. After reaching the age of 2 1, you can apply for relatives to immigrate to the United States for the whole family.

Further reading: how to join the household registration when immigrating to the United States

First, you must live in the United States for five consecutive years after obtaining permanent residency, which is the minimum residence period for naturalization. Within five years, you can't leave the United States for more than six months in a row. If it is more than half a year, you must provide proof that you have no intention of giving up your right of abode in the United States.

Therefore, it is necessary to extend the naturalization application time accordingly and recalculate the residence time in the United States. Before applying for naturalization to the US Immigration Service, you must live in the United States for at least three years, at least half a legal period.

2. A foreign citizen who marries an American citizen must remain married for two years before both husband and wife can apply for naturalization to the Immigration Bureau.

The new immigration law stipulates that foreign citizens who are married to American citizens or permanent residents should apply for naturalization as soon as possible as long as they meet the conditions for applying for American citizenship, so as to become American citizens as soon as possible and enjoy all the rights as American citizens. But the prerequisite must be a marriage relationship that lasts for more than two years.

3. When applying for naturalization

You must live in the United States for the last six months of five consecutive years and live in a local state or city for at least six months.

4. Applicants for naturalization must be at least 18 years old.

Foreigners under the age of 16 who have permanent residency in the United States, whose parents have acquired American citizenship, can automatically acquire American citizenship with their parents. However, children aged between 16 and 18 must apply for naturalization independently.

If the child is under the age of 18, and one parent is an American citizen and the other parent is a foreigner, before the child reaches the age of 18, the parent with American citizenship can apply for naturalization on his behalf.

Five, must have a preliminary English reading, listening, speaking and writing skills.

Applicants for naturalization should have a certain degree of English knowledge and a certain degree of English ability. When examining the eligibility for naturalization, immigration officials will conduct an oral test, and the naturalization applicant will answer the knowledge about American history and the American government in English.

Test the actual English expression ability of naturalization applicants through oral examination. This kind of test questions is printed and publicly sold by the American government. If the applicant fails to pass the first oral exam, the applicant is allowed to take two make-up exams within one year.

If the applicant is over 50 years old and has lived in the United States for more than 20 years, he can be exempted from taking the English test and can use his own language instead. The new immigration law also exempts applicants over the age of 55 who have obtained permanent residency in the United States for more than 15 years and replaces them with their mother tongue.

Six, you must stay in the United States for five years to perform well.

According to the new immigration law of the United States, sexual intercourse with others, selling sexual intercourse or bigamy, or failing to perform maintenance obligations, and drinking and taking drugs are all bad behaviors and cannot be naturalized.

Seven, must have a certain understanding of American history and constitution, immigration law.

It is mainly about the understanding of important events, figures, government agencies and rights in American history, as well as the understanding of the principles and important amendments of the American Constitution.

8. Applicants for citizenship must give up their original nationality.

If you want to keep your original nationality, you can't become an American citizen.