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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.

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,...

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