US green-card programme suspension: What happens to your 401(k), stocks and property if you return to India?

The Trump administration on Thursday suspended several technology giants and IT outsourcing companies, including Microsoft, Infosys, Cognizant, Tata, Wipro, HCL Technologies, Capgemini and Adobe, from the US government’s permanent labour certification programme or PERM.

PERM is an important route through which employers sponsor eligible foreign workers for permanent residency in the United States. The suspension does not automatically revoke existing H-1b visas, but it could disrupt the green-card pathway for workers whose applications are affected.

“Legally, there is presently no prohibition on these companies employing foreign workers in the United States on otherwise valid H-1b visas. What has been suspended is the PERM process, which, for a large category of employees, is a crucial step in moving from temporary employment status towards permanent residency,” said Siddharth Batra, Advocate at the Supreme Court of India.

What does the suspension mean for Indian techies?

Indian tech professionals on a H-1b visa could face disruptions in securing permanent residency through employer sponsorship, but the longer-term impact will depend on how long the suspensions remain in place and how the US government handles affected applications.

An H-1b visa allows foreign workers to stay in the US for up to six years, with an initial period of up to three years and an extension of up to another three years.

Apart from the 6-year validity, an additional one-year extension is available if a qualifying PERM or I-140 was filed at least 365 days before the extension would begin. These can even be filings made by a previous employer, said two experts who spoke to Livemint.

In case, the suspension forces an Indian worker to return home, they may still have to manage their US retirement accounts, tax obligations investments and property from India. Here’s how they can do it.

How to manage 401(k) account from India?

Leaving the United States does not by itself require closing a 401(k), the retirement savings account most US employers offer. They can keep the money in employer’s plan or move it to an IRA (Individual Retirement Account), said Karan Jaiswal, Senior Associate at SKV Law Offices.

He added that plans may transfer balances of $7,000 or less without the employee’s consent. If an employer terminates the retirement plan entirely, all account balances must be paid out.

Withdrawals before age 59.5 attract a 10% additional US tax, over and above regular income tax, unless an exception applies such as leaving the job in or after the year one turns 55. Once a person is no longer treated as a US resident for tax purposes, the plan deducts 30% tax at source by default.

However, a lower tax rate under the India-US tax treaty can apply if the person submits Form W-8BEN, which allows only India to tax regular pension payments received by an Indian resident, the expert noted, warning that the protection does not cover a one-time lump-sum withdrawal.

According to Jaiswal, Section 158 of the Indian Income-tax Act, 2025 provides an option to defer taxation of eligible foreign retirement account earnings until withdrawal. Individuals who meet the conditions can file Form 40 by the applicable income-tax return due date, aligning the timing of Indian taxation more closely with US taxation.

Can you manage US stocks, property from India?

A person returning to India can also keep holding their US bank deposits, shares, brokerage investments or real estate. However, banks and investment platforms may require updated documentation or tax forms, and some may restrict accounts held by non-US residents.

Individuals must also review their Indian banking arrangements and disclose foreign assets and income where required. Interest, dividends, rental income and asset sales may trigger tax obligations, said Tushar Agarwal, Founder and Managing Partner at C.L.A.P. JURIS, Advocates & Solicitors.

“US real estate can generally continue to be held from India, but rental income, property taxes, management obligations and US tax filings do not disappear with the change of residence. The prudent approach is to regularise account documentation and tax compliance before relocating, rather than assuming that all US financial arrangements can continue unchanged,” he added.