Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: WCMinor Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Roth IRA eligibility for expat? Date: 1/9/2002 10:16 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Chris,

I share your problem as I live overseas and run into income limits for the Roth IRA. I hope your post generates more responses because I am not sure that my answers are correct; I welcome any corrections.

Question 1: Am I able to open up and contribute to a Roth IRA, given that I only have income earned abroad(UK) in 2001? What if I do not or (or cannot) exclude all of that 2001 foreign earned income on IRS Form 2555? Does that give me the AGI I need to be eligible?

My understanding is that if you exclude all of your foreign earned income and have no US earned income (i.e. no taxed earned income) you are not eligible to contribute to a 403(b) IRA but that you could contribute to a Roth (if you meet the other conditions for a Roth).

Question 2: My income was under the $110K maximum for Roth IRA eligibility in 2001, but may exceed this amount in 2002. What does this mean? Am I better off just going with a Contributory IRA? Or even with index funds not part of a retirement / tax deferred scheme? Does the fact that this is foreign earned income (see above) change the equation (as $76k could be 'excluded')

See
http://www.irs.gov/prod/forms_pubs/pubs/p5900202.htm
Eligibility is based on adjusted AGI and you adjust by adding back in your foreign income exclusion so no, you will not qualify for a Roth in 2002.


Question 3: How much would it cost for a financial advisor to sort this out!!?

I got quotes from $800-$3000 for preparing my expatriate tax return and that included getting my IRA eligibility questions answered.

WCMinor
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement