Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I was wondering if anyone out there is familiar with the rules governing IRAs for people living abroad. I am a self-employed contractor living in Germany and I am not certain if I can continue to contribute to my SEP-IRA (I would also like open a ROTH-IRA, but that's another post...) if I use the 70K exclusion allowance.
==================

Some have indicated that you may partially "elect" out of the Section 911 exclusion ($74,000 in 1999) for purposes of qualifying wages for the IRA contribution, but I don't believe that's possible. In defining compensation for purposes of the IRA, Prop. Regs. §1.219(a)-1(b)(3) state in part "...but does not include amounts ... not includible in gross income such as amounts excluded under Section 911." Most construe the "not includible" as determinative as opposed to "not included." And "amounts excluded" refers to the statute under Section 911 whereby at the taxpayer's election foreign earned income is not includible in income to the statutory limits.
Print the post  

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.