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Hoots : Investment methods for a US non-resident alien, living in the US for the next 2-5 years only If an employer does not offer a 401k plan, what options do I have to invest in stocks, bonds, ETFs, etc.? Would a Roth account - freshhoot.com

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Investment methods for a US non-resident alien, living in the US for the next 2-5 years only
If an employer does not offer a 401k plan, what options do I have to invest in stocks, bonds, ETFs, etc.?

Would a Roth account be a viable option considering I will probably be in the US for 2-5 more years?

Should I just open a brokerage account with a low cost firm (Schwab, Scottstrade, etc.) and invest my after tax dollars?


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Like you said, yes you can open a brokerage account. They will ask you for some identifying information and you will have to have a valid visa. You can also contribute to a Roth IRA.

I think the more important questions you should be asking are:

How does my home country treat retirement accounts in US?
Is the investment in a US Traditional IRA treated as tax deferred as
well?
Is the Roth IRA treated as tax-free?
What if you leave the US and need the money before retirement?

I think it's important to come up with a long term plan. It might be better to just open a regular account and invest. Again all of it depends on how your home country treats income from the US.

EDIT: You will pay an early withdrawal penalty from a Roth IRA unless otherwise stated in the US tax treaty with Egypt.

Some resources that might be helpful:

U.S. Taxation of Foreign Investors

Taxation of Foreign Nationals by the United States


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