IRA contribution on foreign earned income
US citizen under age 70 makes $50,000 teaching overseas, entire amount will be excluded from US Form 1040 under the foreign earned income exclusion, can he make a Roth or non-deductible IRA contribution?
US citizen under age 70 makes $50,000 teaching overseas, entire amount will be excluded from US Form 1040 under the foreign earned income exclusion, can he make a Roth or non-deductible IRA contribution?
Permalink Submitted by Marvin Rotenberg on Wed, 2010-01-27 19:24
No. It must be reported on Form 1040.
Marvin
Permalink Submitted by Anonymous (not verified) on Wed, 2010-01-27 20:04
I would agree, based on Pub 590:
What Is Not Compensation?
Compensation does not include any of the following items.
Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs
pmk