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Birds of a Feather / Overseas Investing in US Market

URL:  http://boards.fool.com/hi-charm-i-went-to-look-for-a-source-and-here-is-26266628.aspx

Subject:  Re: Retiree with Foreign Earned Income Roth IRA Date:  1/9/2008  5:15 PM
Author:  SkyeQ Number:  605 of 677

Hi Charm,

I went to look for a source, and here is the deal. It appears that if you have reduced your gross income by the foreign income exclusion and nothing is left (ie, if your earned income is <80,000 or so) then you can not contribute to the Roth. If you have taken the foreign income exclusion, and you still have a positive adjusted gross income, then it is still possible to contribute to the Roth. Correct me if I'm wrong.

http://www.irs.gov/publications/p590/ch05.html

Adjusted gross income.

This is generally the amount on line 38 of your 2006 Form 1040; line 22 of your 2006 Form 1040A; or line 36 of your 2006 Form 1040NR. However, you must add to that amount any exclusion or deduction claimed for the year for:

Foreign earned income,...


Skye
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