Which pre-tax benefits cut your tax on OPT vs H-1B? The numbers for 2027 open enrollment

Why can an OPT worker save more than an H-1B worker at $60,000?

A nonresident alien generally gets no standard deduction, so in a state with no income tax their whole salary is taxable income and they reach a higher bracket sooner. The IRS says plainly that "If you are a nonresident of the U.S., you cannot claim the standard deduction" (Nonresident: Figuring your tax).

The 2026 single brackets are 10% to $12,400, 12% to $50,400, 22% to $105,700 and 24% to $201,775 (Revenue Procedure 2025-32). A resident subtracts the $16,100 standard deduction first, so they do not reach 22% until $66,500 of wages ($50,400 + $16,100).

An Indian student or business apprentice can take the standard deduction under Article 21(2) of the US-India treaty, so these rows do not fit them. No IRS ruling we found settles whether that article reaches OPT pay; the Article 21(2) guide and the standard deduction guide explain who takes it.

What does each election save at $60,000, $100,000 and $150,000?

At $100,000 and $150,000 the whole difference is FICA, and only on health elections: the H-1B resident saves 7.65% more on premiums, an HSA or an FSA. At $60,000 the OPT worker saves more on every election, as the example shows.

Each figure is the election times the top rate, plus 7.65% for the H-1B worker on everything but the 401(k), rounded to whole dollars. Linh's $60,000 401(k) row is the exception, worked above. At $100,000 the HSA saves the OPT worker $4,400 x 22% = $968, and the H-1B worker $968 + $4,400 x 7.65% ($337) = $1,305.

The FICA parts are $2,400 x 7.65% = $184, $4,400 x 7.65% = $337 and $3,400 x 7.65% = $260. A Roth 401(k) saves $0 now in every row.

Other salaries can split the rates again. From $105,700 to $121,800 of pay the nonresident is in the 24% bracket and the resident in the 22% bracket ($105,700 + $16,100 = $121,800).

The take-home calculator models 401(k), HSA and other pre-tax benefits for your own pay.

Does my status in 2027 change what a 2027 election saves?

What a 2027 election saves depends on your tax status in 2027, because that is the year the payroll deductions come out.

A student whose first year in the US as an F, J, M or Q student was 2022 has 2022 to 2026 as exempt years. If they meet the substantial presence test in 2027, they are a resident from their residency starting date and owe FICA from then.

From that date, their premiums, FSA and payroll HSA save 7.65% more than a 401(k) dollar, like the H-1B rows above. A worker who changes from F-1 to H-1B owes FICA from the first H-1B day, whatever their residency. The sixth-year guide shows how to find your starting date, and the OPT vs STEM OPT vs H-1B take-home comparison shows the change in a paycheck.

Which states tax these benefits differently?

California taxes HSA contributions, New Jersey taxes health premiums and FSAs bought through a cafeteria plan, and Pennsylvania taxes 401(k) deferrals. Other states were not checked for this guide.

• California allows no deduction for HSA contributions, adds back an employer's contribution and taxes HSA earnings each year (FTB Schedule CA (540) instructions).
• New Jersey "does not adopt the federal income tax treatment of cafeteria plans" (TB-39(R)), though 401(k) deferrals follow the federal rule.
• Pennsylvania counts contributions to a qualified deferred compensation plan as compensation, but exempts Section 125 contributions for hospitalization, sickness, disability or death coverage to the extent they are exempt federally (PA Department of Revenue).

Three cells carry no state saving: the HSA in California, premiums in New Jersey and the 401(k) in Pennsylvania.

A nonresident's federal saving shrinks in a state with income tax, because the election also lowers their state tax deduction. In California the OPT worker's federal saving on premiums is $479, not $528. State payroll programs, such as disability or family leave contributions, may also be withheld; check your pay stub.

In what order do the elections save the most tax?

For a FICA payer, a dollar of premiums, health FSA or payroll HSA saves 7.65% more than a traditional 401(k) dollar at the same tax rate. For a FICA-exempt nonresident on OPT, every pre-tax dollar saves the same now at the same tax rate.

These are decision rules, not advice:

1. If your plan matches 401(k) deferrals, the match is employer money on top of any tax saving, and no figure here counts it. The 401(k) guide for OPT and H-1B explains matches and vesting.
2. If you pay FICA, a payroll HSA or FSA dollar beyond the match saves more now than an extra 401(k) dollar in the same bracket: 7.65% more below the wage base ($192,300 for 2027 pay), 1.45% more above it. An HSA needs HDHP coverage each month, and a health FSA generally must be spent within its plan year.
3. If you are FICA-exempt, compare what happens later. A health FSA you do not spend is generally lost, unless the plan offers a grace period or a carryover (up to $700 into 2028); a traditional 401(k) is generally taxed by the US when it is paid out, even after you leave, unless a treaty exempts it.
4. If you are choosing Roth or traditional, a traditional deferral saves your top rate now and a Roth deferral saves $0 now. The IRA and Roth IRA guide covers the Roth side.

The 2027 health account limits are published. An HSA takes up to $4,500 self-only or $9,000 family (Revenue Procedure 2026-24), and a health FSA up to $3,500 (Revenue Procedure 2026-35). The 2027 401(k) limit is not yet published; for 2026 it is $24,500 (Notice 2025-67).

What happens to a traditional 401(k) saving if I leave the US?

The US generally taxes a traditional 401(k) paid to you as a nonresident alien unless a treaty exempts it, so today's saving can be partly a postponement. Publication 519 treats the part from contributions for US work as effectively connected income "whether or not you are engaged in a U.S. trade or business" that year.

Without a treaty exemption, the payer withholds "at the statutory rate of 30% on the entire distribution that is from sources within the United States" (Publication 515). The payer may instead withhold at graduated rates on the part that comes from your US work.

The IRS Tax Treaty Table 1 lists these rates on US pensions paid to a treaty resident. The table covers income that is not effectively connected, and no IRS text we found says whether a 0% rate reaches the part Pub 519 treats as effectively connected. Read the article itself before relying on a rate.

The early withdrawal guide and the guide to moving back to India work through a cash-out.

What to do next

1. Count your exempt years to see whether you will be a resident in 2027, which decides whether your health elections save FICA.
2. Read your plan summary: which elections go through the cafeteria plan, whether the HSA is funded by payroll, and the 401(k) match.
3. Put your salary, state and elections into the take-home calculator to see the saving at your own bracket.
4. Make your elections before your employer's open enrollment closes. If you are comparing Marketplace coverage, read the 2027 subsidy change for visa holders first.
5. File your 2026 return by Thursday, April 15, 2027 if you had wages. Pre-tax amounts are already left out of W-2 box 1, so you claim nothing extra for them. With an HSA, Publication 969 still says to report all contributions, your employer's included, on Form 8889 with your return. F1TaxReturn does not prepare Form 8889. It prepares Form 1040-NR and Form 8843 for free once the IRS publishes the final 2026 forms; it does not prepare Form 1040 for residents.