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Quick Answer

ITIN holders can open a Roth IRA at Fidelity, Schwab, or Vanguard — no SSN required. Best first fund: FSKAX (U.S. total market, 0% expense ratio). Contribute up to $7,500/year. If your employer offers a 401(k), contribute enough to get the full match first. All major retirement accounts (401(k), Roth IRA, Traditional IRA) accept ITIN.

Why Do Investing and Retirement Matter for ITIN Holders?

Investing matters because most ITIN holders won't have Social Security or a pension. An estimated 14 million undocumented immigrants live in the U.S. (Pew Research, 2023) — nearly all building retirement wealth entirely on their own. You can legally open a brokerage account, put $7,500 a year into a tax-free Roth IRA, and shelter $24,500 in a 401(k) in 2026. Over 20 years these accounts compound into six figures.

This is critical because retirement planning for ITIN holders is different. You likely won't have Social Security credits (unless you have prior work authorization history). You won't have a traditional pension. Building retirement wealth through investing isn't optional — it's the primary path. A Roth IRA lets you put away $7,500 a year completely tax-free. A 401(k) (if you have work authorization) lets you shelter $24,500 in 2026. Over 20 years, these accounts compound into six figures. Most ITIN holders don't realize this pathway exists until they've already worked for five years without saving.

What investing gives you: Tax-deferred growth (in traditional IRAs), tax-free growth (in Roth IRAs), employer-matching free money (in 401(k)s), and the ability to build a retirement fund that immigration status cannot take away.

Know Your Work Authorization Status

Employer 401(k) plans are only available if you have work authorization (W-2 job or DACA with EAD). Roth IRAs and taxable brokerage accounts require only an ITIN, no work authorization needed. Solo 401(k)s for self-employed people require EAD for ITIN holders. Check your status before opening accounts.

The short answer: ITIN holders can open brokerage and retirement accounts at Fidelity, Charles Schwab, and Vanguard. Investing is a passive activity — it does not require work authorization. You report income on your U.S. tax return using your ITIN.

Can I Invest With an ITIN?

Yes. The IRS does not require U.S. citizenship or a Social Security Number to open a brokerage account. An ITIN is enough to open a taxable account at any of the 3 major brokers — Fidelity, Schwab, or Vanguard — because investing is passive income, not employment. To open a Roth or Traditional IRA, you also need earned income at least equal to your planned contribution.

According to the Institute on Taxation and Economic Policy, undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022. The ITIN exists so those taxpayers can comply with U.S. tax law — and that compliance is what makes every account below accessible.

Which Brokerages Should ITIN Holders Start With?

Three brokerages reliably accept ITIN holders for both taxable accounts and IRAs: Fidelity, Charles Schwab, and Vanguard, all with no account minimums and $0 commissions. Fidelity is the most ITIN-friendly and offers zero-expense-ratio funds. Most fintech apps like Robinhood, Acorns, and Webull require an SSN, so stick with the 3 established brokerages below:

Most fintech apps (Robinhood, Acorns, Webull) require an SSN. Stick with the established brokerages above.

Can I Open a Roth IRA With an ITIN?

Yes, a Roth IRA is one of the best accounts available to ITIN holders. You contribute after-tax dollars up to $7,500 in 2026 ($8,600 if 50+), and the money grows tax-free, including all dividends and capital gains. You can withdraw your contributions, but not earnings, at any time without penalty, as long as you have earned income.

Fidelity is the most ITIN-friendly option for a Roth IRA. You can open an account online using your ITIN, though some users report needing to call or visit a branch to complete the process.

Can I Contribute to a 401(k) With an ITIN?

Yes, if your employer offers a 401(k) and you have an Employment Authorization Document (EAD) or work visa, you can participate. DACA recipients with a valid EAD are eligible for employer-sponsored 401(k) plans. The 2026 employee contribution limit is $24,500, or $32,500 if you are age 50 or older.

If you are self-employed with an ITIN and DACA, you may be able to open a Solo 401(k). Speak with a tax professional about your specific situation.

What Should ITIN Holders Invest In?

For most long-term investors, low-cost index funds are the recommended approach because they give broad market exposure with minimal fees. A simple split many investors use is 80% in a U.S. total market fund like FZROX (0% expense ratio) and 20% in an international fund like FZILX. Adjust based on your timeline and risk comfort.

A simple starting split many investors use: 80% U.S. total market fund + 20% international fund. Adjust based on your timeline and risk comfort.

How Is Investment Income Taxed With an ITIN?

You report dividends and capital gains on your U.S. tax return using your ITIN. When you open an account you complete 1 of 2 forms: Form W-9 if you are a U.S. tax resident, taxed at the same rates as citizens, or Form W-8BEN if you are a nonresident alien, which subjects dividends to 30% withholding. Most year-round residents use the W-9.

Most ITIN holders who live in the U.S. year-round qualify as resident aliens for tax purposes under the Substantial Presence Test. If you pass that test, use a W-9 and you'll be taxed at the same rates as U.S. citizens.

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