H-1B Financial Clarity

You're on an H-1B.
Your money is more complicated
than your visa.

Your 401K, your RSUs, your NRE/NRO accounts, your Indian mutual funds — they sit in two financial systems that don't talk to each other. Your US CPA sees the US side. Your Indian CA sees the India side. Nobody has looked at both at the same time.

  • ✓Your complete net worth across both countries — one number, one picture
  • ✓Your FBAR exposure flagged against your actual NRE/NRO balances
  • ✓Your 401K and Indian retirement accounts modeled together against your actual timeline

Four questions. One number that tells you if you're ahead or behind.

Your H-1B Wealth Clarity Report
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You're probably in one of these situations

3–8 years in, uncertain timeline

You contribute to your 401K because that's what you're supposed to do. You haven't run the math on what happens to it if you go back to India in five years. Neither has your CPA.

NRE/NRO accounts still active

Your NRE account is 'tax-free' — in India. In the US, the interest has been taxable income since your first day of residency. Most H-1B holders find this out at year three.

RSUs vesting, visa uncertainty compound

If your employer files for H-1B transfer or you're laid off, the 60-day window is also a financial window with specific equity decisions that have hard deadlines. Most people call their immigration attorney. Nobody calls about the money.

Indian mutual funds, still holding

SBI Blue Chip, HDFC Mid Cap, ELSS funds — they became PFICs the day you became a US tax resident. The window to elect the most favorable treatment was year one. Many people find out in year two or three.

If any of these are you, this was built for your situation specifically.

$10,000
Per-account FBAR penalty for non-filing — starting point for innocent omissions on NRE/NRO accounts
US Treasury / FinCEN
60 days
Grace period when H-1B employment terminates — and the window for specific equity, 401K, and COBRA decisions most holders miss
USCIS
3 elections
Available for Indian mutual funds classified as PFICs — and the default (no election) is the worst outcome
IRS Form 8621
From the NettWorth Research Library
The H-1B Financial Playbook
The H-1B Financial Playbook
The four financial problems every H-1B holder has that their annual CPA filing never addresses — and the decision frameworks for each.
First 90 Days in the US from India
First 90 Days in the US from India
Indian mutual funds become PFICs on day one. NRE interest is US-taxable from day one. The decisions that can't wait until you're settled.
Before You Move: India → US Checklist
Before You Move: India → US Checklist
Six months before, thirty days before, first ninety days after. The financial sequence your CA and CPA never coordinate.
Questions & Answers

Should I choose Traditional 401K or Roth 401K as an H-1B holder?

It depends on where you plan to retire. If you plan to return to India: the US-India DTAA Article 20 allows India to tax 401K distributions for Indian residents. India does not recognize Roth accounts as tax-exempt — distributions may be taxed as ordinary income in India regardless of which 401K type you contributed to. If you plan to retire in the US permanently, the standard Roth vs. Traditional analysis applies. For anyone with an uncertain timeline, the correct answer is to model both paths before defaulting to 'max out Traditional.'

Do I need to file FBAR for my NRE and NRO accounts as an H-1B worker?

Yes. If the aggregate balance of all your foreign financial accounts — NRE, NRO, savings accounts, PPF, fixed deposits — exceeds $10,000 at any point during the calendar year, FinCEN Form 114 (FBAR) is required by April 15, with automatic extension to October 15. The NRE account's tax-free status in India does not affect FBAR filing requirements. FBAR is a US reporting obligation based on account existence and aggregate balance, not taxability. Non-willful failure penalties start at $10,000 per account per year.

Are my Indian mutual funds a problem now that I'm in the US on an H-1B?

Yes. Indian mutual funds held by US tax residents are classified as PFICs — Passive Foreign Investment Companies — under US tax law. The default tax treatment is punitive: gains are taxed as ordinary income at your marginal rate, plus an interest charge applied to each year's gains. The mark-to-market election (Form 8621) is the most practical alternative for most H-1B holders with Indian equity funds. The window to make this election in your first year of US tax residency is often the most important financial decision H-1B holders don't know exists. After that window closes, your options are worse.

What happens to my RSUs if my H-1B visa fails or I get laid off?

You have a 60-day grace period under USCIS rules after H-1B employment terminates. During that window: unvested RSUs from the terminated employer typically do not accelerate — your plan document controls this, and most people don't check it in advance. RSUs that vest during your grace period may be withheld at the 30% non-resident alien rate if your employer updates your tax status before the payroll runs. Your 401K stays in place and does not need to be moved. If you leave the US within the 60-day window, you may trigger dual-status filing complexity for that tax year.

Is NRE account interest taxable in the US for H-1B holders?

Yes. NRE account interest is exempt from Indian income tax for NRIs — that tax exemption is an Indian rule for Indian residents and NRIs. Once you become a US tax resident (which H-1B holders are, under the substantial presence test), NRE interest is taxable US income, even though the account remains technically an NRE account. The account type doesn't change. Your residency status for US tax purposes does. Most H-1B holders earn NRE interest for months or years before a CPA mentions this. The interest is reportable as ordinary income on your US return from your first day of US tax residency.

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