Can H-1B visa holders invest in the US stock market?
Yes. H-1B visa holders who are US tax residents (meeting the Substantial Presence Test) can open and invest in taxable brokerage accounts, Roth IRAs, Traditional IRAs, and participate in employer 401(k) plans — just like US citizens. There are no immigration-law restrictions on stock market investing for lawful non-immigrant status holders. Important nuances: (1) You may have FBAR and FATCA filing obligations if you retain foreign investment accounts. (2) If you hold Indian mutual funds (PFICs — Passive Foreign Investment Companies), they are subject to punitive US tax treatment. (3) If you eventually leave the US, your retirement accounts remain and can be managed from abroad, but early withdrawal and cross-border tax rules apply.
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