If you take advantage of the foreign income exclusion to avoid taxation in the U.S. on those earnings, then you will not be able to use those earnings as income on which to base allowable IRA contributions, Roth or otherwise. ***I have been working abroad for over a year and take advantage of the foreign income exclusion. I plan to return to graduate school in the US next year. I do not expect to be working during graduate school, which means that I will continue to have no taxable earnings on which to base an allowable IRA contribution. I am only 24 and would like to set up my first IRA (preferably a Roth IRA); however, from what I am reading on this board, that is not possible because I do not have taxable US income. My questions:1.Has anyone successfully declined to exclude $2,000 from the foreign income exclusion and then used this taxable income for an IRA?2. If option 1 is not feasible, has anyone living abroad found a creative way around this obstacle?Thanks!Maggie
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