Message Font: Serif | Sans-Serif
No. of Recommendations: 0
We should be certain that you're aware of an important point. If the foreign earned income exclusion covers all of your earned income for a year, then you can't make an IRA
contribution for that year. Some have suggested that because the foreign earned income exclusion is optional, the taxpayer can refuse to use it for $2000 and use that money to qualify
for an IRA contribution. Others believe that the exclusion, although optional, is of the all-or-nothing variety, making the first suggestion impossible. No one (of whom I'm aware) has
cited clear authority supporting either position. Good luck! --Bob

OK... let's see if I understand what you are saying.

Because I receive the exclusion for my entire income for the entire year, I am not able to contribute to an IRA (of either kind). Is that the gist of it?

Print the post  


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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.