As the global economy becomes more connected, individuals can benefit from a wider array of financial opportunities. For non-US citizens, one such opportunity is the ability to open an Individual Retirement Account (IRA). But can a non-US citizen open an IRA and, if so, how? In this article, we’ll explore the regulations and implications surrounding this important financial decision.
Yes, a non US citizen can open an IRA. In order to open an IRA, the investor must have a valid Social Security Number (SSN) or an Individual Tax Identification Number (ITIN). Non-US citizens who are not eligible for an SSN but who have a valid ITIN may open an IRA. The IRS allows non-US citizens to open a traditional IRA, Roth IRA, or SEP IRA. You also have the option to open a self-directed IRA.
Can a Non-US Citizen Open an IRA?
Many non-U.S. citizens would like to benefit from opening an IRA, but question whether they are eligible to do so. The good news is that non-U.S. citizens can open a traditional or Roth IRA, but there are some specific requirements they must fulfill in order to be eligible.
Requirements for Non-U.S. Citizens Opening an IRA
In order for a non-U.S. citizen to open an IRA, they must meet the following criteria:
- Have an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN).
- Have earned income from a U.S. source.
- Be a resident of the U.S. or have a U.S. address.
- Be over the age of 18.
Types of IRAs Available to Non-U.S. Citizens
Non-U.S. citizens are eligible to open both traditional and Roth IRAs. Traditional IRAs allow you to contribute pre-tax earnings and defer taxes until you withdraw the funds. Roth IRAs require you to pay taxes up front, but the funds can be withdrawn tax-free in retirement.
Contributing to an IRA as a Non-U.S. Citizen
Non-U.S. citizens can contribute up to the annual maximum of $6,000 to their IRA in 2021 (or $7,000 if they are aged 50 or over). Contributions must be made with earned income from a U.S. source in order to be eligible for the tax benefits associated with an IRA. Non-U.S. citizens will also need to file a U.S. tax return in order to be able to contribute to an IRA.
Conclusion
Non-U.S. citizens can open both traditional and Roth IRAs, provided they meet the eligibility requirements. Contributions are limited to earned income from a U.S. source and must be reported on a U.S. tax return in order to be eligible for the tax benefits associated with an IRA.
Frequently Asked Questions
1. Who can open an IRA?
Anyone who has earned income can open an IRA, regardless of citizenship. Generally, you must have a valid Social Security number (SSN) to open an IRA, but non US citizens who are employed in the US and have an Individual Taxpayer Identification Number (ITIN) can open an IRA as well.
2. What types of IRAs can a non US citizen open?
Non US citizens can open a Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, or Self-Directed IRA. The type of IRA you choose will depend on your individual financial goals, but all of these accounts allow you to save for retirement.
3. What information is required to open an IRA?
To open an IRA, you will need to provide your name, address, date of birth, and SSN or ITIN. You will also need to provide information about your employer, such as your employer’s name, address, and tax identification number. You may also need to provide information about any other retirement accounts you may have.
4. Are there any limits on how much money I can contribute to an IRA?
The maximum annual contribution to an IRA is $6,000 for those under the age of 50, and $7,000 for those over the age of 50. Additionally, if you are covered by a retirement plan at work, your contribution may be limited depending on your income.
5. Are there any tax benefits to having an IRA?
Yes, there are tax benefits to having an IRA. Traditional IRAs are tax-deferred, meaning you won’t pay taxes on the money you contribute until you withdraw it. Roth IRAs allow you to withdraw your contributions tax-free, while your earnings grow tax-free.
6. Are there any restrictions on withdrawing money from an IRA?
Yes, there are restrictions on withdrawing money from an IRA. Generally, you cannot withdraw money from an IRA before age 59 ½ without paying a 10% penalty. Additionally, Traditional IRAs are subject to Required Minimum Distributions (RMDs) which require you to take a certain amount of money from your IRA each year.
Yes, a non US citizen can open an IRA. With the right information, preparation and guidance, it is possible to open an IRA regardless of citizenship status. While there may be extra steps involved, it is possible to open an IRA as a non US citizen and begin investing for retirement.

Andrew Terry is a highly respected economist, who received their graduate education at Harvard University. They have built a reputation as a thought leader in their field, with a particular focus on precious metals investing. Their work has been widely cited in academic journals and publications, and they are frequently invited to speak at conferences and events around the world.