OK I will try again. I must have made a mistake somewhere in Turbo Tax.

And on the issue of taking part of the foreign income exclusion, according to the IRS it is not possible.
Here is the e-mail response I received from the IRS.

Once you have elected to claim the Foreign Earned Income Exclusion, you
must utilize it to its fullest allowable extent in any year that you
are otherwise entitled to claim it. If you fail to fully utilize your
maximum allowable excludable income amount, this will constitute a
revocation of the Exclusion, and this could jeopardize your right to claim
the Exclusion in future years.
This law generally makes it difficult to contribute to your retirement
plan if you are claiming the Foreign Earned Income Exclusion, because
you are required to have taxable US compensation in order to contribute
to a retirement plan. Retirement plan contributions and the Foreign
Earned Income Exclusion are mutually exclusive unless you have US source
compensation, or, foreign earned income in excess of the maximum
excludable amount.