missionary excluding 100% income
Can you tell me how long the rule has been in effect for funding a Roth IRA for a missionary who excludes 100% of his income (out of country missionary but US income) whereby he is disallowed to fund a Roth IRA?
thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Sat, 2017-04-08 00:55
I believe that income excluded by the foreign earned income or housing exclusions has never been counted as taxable compensation for IRA contributions. This link is for the 1994 Pub 590 where this is stated on p 5. Roth IRAs came into existence in 1998 and conform to traditional IRA rules for determining taxable compensation.https://www.irs.gov/pub/irs-prior/p590–1994.pdf