Roth IRA Contributions with International Income
Can someone who is a US citizen, living, working and earning tax free income in Japan, contribute to a Roth IRA in the US? Client has no US income.
Rob
Can someone who is a US citizen, living, working and earning tax free income in Japan, contribute to a Roth IRA in the US? Client has no US income.
Rob
Permalink Submitted by Alan Spross on Mon, 2008-06-09 21:27
With no US income, there is no taxable compensation for IRA contribution purposes. Workers in other countries frequently use the foreign earned income or housing exclusions to reduce their income subject to US taxation and this can also eliminate IRA contributions.
These elections are optional, but cannot be partial and therefore one cannot elect to exclude all but the amount needed to support an IRA contribution.