529 conversion to Roth for a beneficiary living abroad
My client’s daughter took a job in Europe after college. She has earned income but it is not taxable in the U.S. Is she precluded from the 529 Roth conversion until she works in the U.S.?
My client’s daughter took a job in Europe after college. She has earned income but it is not taxable in the U.S. Is she precluded from the 529 Roth conversion until she works in the U.S.?
Permalink Submitted by Alan - IRA critic on Mon, 2024-06-03 23:53
Yes, if her entire income is covered by the foreign earned income exclusion, there is no earned income left for an IRA contribution, including a transfer from a 529 plan.