Interesting.. Didn't know about the capital gains tax as NRA. Definitely going with taxable brokerage account then. Thanks again for your inputs!

Thanks a lot for your responses. Appreciate it.

Yes, I'll become non-resident alien. And these are just estimates but looking at average 7% return on SPY, I expect those to grow by ~40% in 5 years. Say I invested total $10000, it might grow to $14000 by the time I withdraw. Assuming ordinary tax bracket of 25%, sounds like I'll need to pay 25% tax + 10% penalty on earnings of $4000.

That basically leaves me with 5% gain.

Instead if I invested same $10000 in taxable brokerage, I'll have to pay 15% taxes on earnings of $4000.

I guess my question wasn't clear in the OP. I was debating on whether it's better to use taxable brokerage account than Roth IRA if I'm pretty sure I'll withdraw all money from them before retirement.

Sounds like on brokerage account, I'll just pay 15% long term capital gains tax while in IRA it'll be 15% taxes + 10% penalty.

Are you sure that's the case? I found this on investopedia

>If you meet the five-year rule:

>Under age 59½: Earnings are subject to taxes and penalties. You may be able to avoid taxes and penalties if you use the money for a first-time home purchase (a $10,000 lifetime limit applies), if you have a permanent disability. If you pass away and your beneficiary takes the distribution, taxes and penalties may also be avoided. 

>If you don’t meet the five-year rule:

>Under age 59½: Earnings are subject to taxes and penalties. You may be able to avoid the penalty (but not the taxes) if you use the money for a first-time home purchase (a $10,000 lifetime limit applies), qualified education expenses, unreimbursed medical expenses, if you have a permanent disability, or if you pass away and your beneficiary takes the distribution.