Roth 401k on foreign income?

Submitted by Anonymous on Wed, 2010-12-08 02:16

Not an IRA question but hoping someone knows the answer.

Assume I work overseas, earn $50,000 but it’s all excludable from my US tax return via the foreign earned income exclusion

We know that I can’t make a TIRA or Roth IRA contribution because the IRS says I have zero earned income for IRA contribution purposes

But if my employer offers a 401k plan can I make a Roth 401k contribution?

Thanks



Submitted by Alan Spross on Wed, 2010-12-08 02:43

Yes, you can make a Roth 401k contribution. And that is the election you should make since a pre tax contribution will not save you money on current taxes.

Submitted by Tony on Tue, 2016-06-14 03:44

I was hoping to revive an old thread on Roth 401k plans to ask for a clarification. Have you seen Revenue Ruling 70-491? I know it’s old, but have you ever seen anything from the IRS to back up why the opposite would hold true today? 

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