What are the rules for contributing to an IRA for U.S. citizens living abroad?
Whether or not you can contribute to your regular or Roth IRA while living abroad depends on your foreign income. Namely, if you are claiming the foreign earned income exclusion, it will limit your ability to contribute to an IRA.
If you exclude all of your income and have no other sources of earned income, you are not eligible to contribute to an IRA. However, if you only exclude part of your income, or claim the foreign tax credit instead, you may still be able to contribute to an IRA. Speak to an Expat Tax Advisor before contributing to make sure you’re making the right choice.
Have more questions about contributions to an IRA for U.S. citizens living abroad? Ready to file? No matter how complicated your U.S. tax return is, there’s an Expat Tax Expert ready to help. Get started with Virtual Expat Tax Preparation from H&R Block.