Your US brokerage account after a layoff: repatriation guide for Indians

When a layoff happens, most people focus on the RSUs — which shares vest, which cancel, what's accelerated. But there's a second question that comes up 30–60 days later: you've sold some shares, the cash is sitting in your US brokerage account, and now you need to decide what to do with it.

This guide covers that decision — what happens to your account after the layoff, the mechanics of moving money back to India, and what not to do.

What happens to your brokerage account

Your brokerage account does not close when you're laid off. The employment link is severed, but the account continues as a retail (personal) brokerage account.

Depending on which platform your employer used:

• E*Trade / Morgan Stanley: the account typically migrates to a standard E*Trade retail account. You keep the same login. Statements and tax documents continue.
• Fidelity NetBenefits: you may receive a notice to transfer to a standard Fidelity brokerage account. The process is initiated online; it takes 3–5 business days.
• Shareworks / Solium (now Morgan Stanley at Work): migrates to a Morgan Stanley retail account.
• Rovia (formerly Capitaworks): follows a similar migration.

The migration doesn't affect your shares or cash. But update your contact details immediately — address, phone number, email — before the employment record is removed from the platform. Outdated details mean you miss tax documents.

Post-termination window for selling

Most equity plan documents give you 90–180 days post-termination to sell shares. After this window, unvested RSUs are cancelled (standard), but for vested shares already in your account, the window usually just determines whether any remaining ESPP or option rights lapse.

For pure RSU positions that have already vested and settled as shares: there's no automatic expiry. The shares are yours. You can hold them or sell them at any time.

Confirm with your specific equity plan document. Some plans have different rules.

The three things you can do with USD cash in the account

Once you've sold shares, the USD proceeds sit in your brokerage account. You have three options:

Option 1: Redeploy in the US brokerage

Buy broad market ETFs instead of holding single-stock risk. You don't need to move the money to India to get diversified exposure.

Common choices for Indian investors in US brokerages:

• VTI: Vanguard Total Stock Market ETF — exposure to the full US equity market
• VOO: Vanguard S&P 500 ETF
• CSPX: iShares Core S&P 500 UCITS ETF (listed on LSE, not always available in US-linked accounts)
• VXUS: Vanguard Total International ex-US — non-US exposure
• BND: bond exposure if you want to reduce equity concentration

This option makes sense if you want to maintain USD/US market exposure and don't have an immediate need for the funds in India.

Tax angle: Capital gains from US ETF sales are taxed in India at LTCG (12.5% after 24 months) or STCG (slab rate). The US doesn't withhold on capital gains for non-US persons — your Indian tax liability is the same whether you redeploy in the brokerage or repatriate.

Option 2: Repatriate to India

Transfer the USD to your Indian bank account (NRE or regular savings, depending on your residency status). This gives you liquidity in INR and lets you redeploy in Indian assets — PPF, NPS, Indian equity, or simply pay down liabilities.

This is the right move if:

• You have near-term expenses in India (home purchase, loan repayment, family obligations)
• You're bearish on USD-denominated assets
• You want to simplify — one country, one currency, one tax regime

Option 3: Hold as USD cash

Leave the money in the brokerage money market fund earning ~4–5% (as of 2026). This delays the decision.

The risk: you're making an implicit currency bet on USD/INR, and the USD cash isn't generating equity-like returns. Most people treating this as "temporary" end up holding for longer than planned.

How to repatriate: the mechanics

Step 1: Sell the shares and confirm settlement

A US brokerage trade settles T+1 (since May 2024). After settlement, the cash is available in your account.

Step 2: Initiate a wire transfer

Log into your brokerage and navigate to "Transfer" → "Wire transfer" or "International wire."

You'll need:

• Your Indian bank's SWIFT code
• Your Indian bank account number (IBAN not used in India; just the account number)
• Your bank's name and branch address
• The amount in USD

Minimum transfer amounts vary by platform; typical minimums are $10,000–$25,000 for international wires.

Wire fees: typically $25–$35 per outgoing wire from US brokerages. Your Indian bank may charge a nominal inward processing fee (₹250–500).

Step 3: Inform your Indian bank

For amounts above ₹50 lakh (approximately $60,000), your Indian bank may ask for source-of-funds documentation:

• Brokerage statement showing the sale
• Any equity vest confirmation from your employer
• A brief explanation of the source

This is standard compliance. Have the documents ready before you initiate the transfer.

Step 4: Receive and convert

The wire arrives in your NRE account (if you're NRI) or your resident savings account (if you're a resident Indian with a foreign currency account or if the bank converts at incoming TTBR rate).

If you're a resident Indian: the money arrives as a USD inward remittance and is converted to INR at your bank's TT buying rate. Negotiate the rate for large amounts — most banks will improve the spread for transfers above $25,000.

If you're an NRI: the money credits to your NRE account and stays as USD or is converted on request.

Tax points on repatriation

No TCS on inbound transfers

TCS (Tax Collected at Source) applies to outward LRS remittances from India, not to money coming into India. Repatriating your US proceeds is not subject to TCS.

Capital gains are still taxable in India

The capital gain is taxable when you sell the shares — regardless of when you repatriate the proceeds. Repatriation is just moving cash; it doesn't create a separate taxable event.

The gain is:

• Sale price (in USD, converted at TTBR rate on sale date) minus cost basis
• Cost basis = FMV on vest date (USD × SBI TTBR rate on vest date), which was taxed as perquisite when the shares vested

Your employer's payroll team should have this data. Your brokerage statement will show sale prices.

DTAA: no double taxation on capital gains

India has a DTAA with the US. Under this treaty, capital gains on shares are taxable only in India (the country of residence) for Indian residents. The US does not withhold tax on capital gains for non-US persons — so there's no US tax to credit back.

This is different from dividends, where the US withholds 25% (reduced to 15% or 10% under the India-US DTAA with a W-8BEN on file). For dividends, you file Form 67 to claim the DTAA credit.

Schedule FA

As long as you hold the US brokerage account at any point during the calendar year (January 1–December 31), you must disclose it in Schedule FA when you file ITR-2. This applies even in the year you close the account and repatriate everything — you held a foreign asset during that year.

Currency decision: when to convert

This is a pure financial decision, not a tax one. A few frameworks:

Convert immediately if:

• You have near-term INR needs
• You don't have a view on USD/INR direction
• Simplicity matters more than optimization

Delay conversion if:

• You expect USD to strengthen (historically, INR has depreciated ~3–4% per year against USD)
• You have ongoing USD expenses (children's education abroad, international travel)
• You plan to redeploy in US assets anyway

Dollar-cost averaging the conversion (convert 25% each month over 4 months) removes the currency timing decision entirely.

Common mistakes

Waiting too long to update brokerage details: the employment link gets removed and account access can get complicated. Do this in week one.

Treating repatriation as the capital gains event: the tax event is the sale. Repatriation is just fund movement. Don't delay selling because you think it'll trigger tax.

Sending money through intermediary services without checking FEMA: for resident Indians, inward foreign remittances are freely permitted. But use banking channels (SWIFT wire) rather than informal transfer services for amounts that will require ITR disclosure.

Ignoring advance tax: if you've realized large capital gains in the financial year, check your advance tax liability. The deadlines are 15 September, 15 December, and 15 March. Miss them and 234C interest applies.

The decision framework

The main thing: the brokerage account isn't going anywhere. You have time to make a considered decision. The mistake is not making any decision and letting the single-stock concentration just sit there.