Tax & Retirement Planning Tips for H-1B & TN Visa Holders: What Every Skilled Worker Should Know

If you’re in the U.S. on an H-1B or TN visa, working hard and building your career, you’re likely also building a financial life—contributing to a 401(k), paying taxes, and planning for the future. But what happens if your visa isn’t renewed? Or if you return home before retirement?

Here’s a simple checklist to keep your tax and retirement plans on track even with immigration uncertainty:

1. Understand Your Tax Status

• Yes, you must file U.S. taxes: Even if you’re not a U.S. citizen, you are a resident alien for tax purposes if you meet the Substantial Presence Test.

• File as Single or Married Filing Jointly (depending on your spouse’s residency).

• Be sure to report foreign bank accounts (FBAR) if your foreign balances exceed $10,000 at any time.

  
  

2. Max Out Retirement Accounts — But Plan for “What If”

• 401(k) contributions reduce taxable income today. But be aware:

  • If you leave the U.S. before age 59½, early withdrawals face a 10% penalty + taxes.

  • Some countries (like India) do not recognize U.S. retirement accounts—no tax deferral at home.

• What to do?

  • Know your options: rollover to an IRA, cash out (with tax hit), or leave the account and manage it from abroad.

  • Consider Roth IRAs or brokerage accounts if long-term U.S. residence is uncertain.

    
    

3. Visa Status Affects Your Financial Risk

• If your visa is revoked, you may have just 60 days to leave—but your 401(k), HSA, or rental property stay behind.

• Plan for repatriation risk: keep part of your savings in internationally accessible or non-qualified accounts.

• Talk to an advisor about dual tax treaties—India, Mexico, and Canada have them with the U.S., but the benefits vary.

  
  

4. Build Credit & Emergency Savings

• U.S. credit scores don’t follow you home—use your time here to build credit and open a few accounts.

• Keep a 6-month emergency fund in case of job loss or relocation.

  
  

5. Choose a Tax Preparer Who Understands Visas

• Many preparers don’t understand immigration statuses or tax treaties.

• Find someone who works with non-citizens and knows the rules for international reporting (Forms 8843, 8938, FBAR, etc.).

  
  

6. Think Globally When You Invest

If there’s a real chance you may return home someday, think twice about concentrating your wealth in U.S.-only retirement plans. Consider investing in assets that are hedged to your home currency, or globally diversified funds that reduce exposure to just one economy. Don’t underestimate the value of liquidity and the ease of transferring tangible or portable assets if you need to repatriate.

The U.S. dollar is the world’s reserve currency and tends to hold its value—but emerging markets like India and Mexico have historically faced inflation and currency volatility. If you’re building long-term wealth, consider alternative investments (such as gold, global ETFs, or real estate in your home country) that can protect your purchasing power across borders and give you optionality in the future.

7. Risk of Doubling Down on Your Employer: Why Visa Holders Should Diversify Their 401(k)

If you’re in the U.S. on a visa and contributing to a 401(k) or Employee Stock Purchase Plan (ESPP), be cautious about buying too much of your own company’s stock. While it might seem like a smart way to invest in your employer, it also concentrates your financial risk—tying both your income and retirement savings to the same source. If the company struggles, you could lose your job and see your portfolio drop at the same time. To reduce this risk, consider selling and diversifying into other assets that aren’t closely linked to your employer. This approach helps protect your long-term financial stability, especially important when your visa status adds another layer of uncertainty.

Final Thoughts:

You may not know how long you’ll stay in the U.S.—but your money should be ready for any path. A little planning now can prevent big financial headaches later.