Context: I'm on a student visa F-1 for grad school, and in my second year in the U.S. I have an SSN for my internship just this summer, and a W-2 compensation. I consulted with Schwab and my DSO, from which I established that I am an NRA but they cannot say anything about my tax filing status.
So back to the question: can I open and contribute to Roth IRA, and can I keep it open even after I leave the U.S.? Ideally, I find a job after graduation, and stay here for 3 years after school (since H-1B is getting extreme). Worst case scenario, I'll return home after graduation. In both case, if possible, I'd like to keep it open and treat it as a retirement account. I understand that I might not get the tax benefit if I move the money back to my home country, but it still seems worth it.
Can I contribute to Roth IRA as an NRA?
byu/humptydumpty16 intax
Posted by humptydumpty16
1 Comment
> can I open and contribute to Roth IRA
Your contributions are limited by your taxable compensation, and nonresident aliens in particular need such compensation to be effectively connected to US trade or business. W-2 box 1 wages generally count as taxable compensation effectively connected to US trade or business.
> can I keep it open even after I leave the U.S.?
Technically yes, but you may want to choose your IRA provider carefully. It’s up to the IRA provider to decide whether to let you keep the account.
> I understand that I might not get the tax benefit if I move the money back to my home country, but it still seems worth it.
The worst-case scenario is more like your home country taxing this more than they would compared to gains in a taxable account.
If that’s not a problem, you are always free to keep the account until age 59.5 and take qualified Roth IRA distributions free of US income tax.