Can I keep contributing to NPS as a US-resident Indian, and how is it taxed?

NRIs can generally maintain and contribute to an NPS (National Pension System) Tier I account, but the US tax angle complicates things. The US doesn't grant NPS the tax-deferred status it enjoys in India, so the underlying fund growth may be reportable annually, and because NPS invests through pooled funds, there's a real risk the IRS views portions as PFIC holdings — triggering Form 8621 and punitive treatment. You'll also disclose it on FBAR/Form 8938. For these reasons, many US-resident Indians stop new NPS contributions after moving and instead max out genuinely US-tax-advantaged accounts like a 401(k) and IRA, which are far simpler and clearly recognized. If retirement saving is the goal, prioritize US vehicles first; wealthserene.com/tools/retirement-planner can show the impact of contributing in dollars.