Skip to main content
No. of Recommendations: 0

I noted TMF's reply and posted a similar question on this thread in December as I live in Hong Kong and was looking into whether I could get an IRA. Since I use the 75,000 dollar exclusion, I basically cannot.

But two things to check into are:
1) You are required to file on any income, as you know. And required to pay US tax on income earned over 75,000 I don't know if that income can go towards "earned income," eg income eligible for a Roth IRA/IRA. Something to look into IF you earn more than 75,000 USD. Example: if you make 100,000 USD/year, then you must pay US tax on 25,000 of that income. You can offset the taxes by claiming the UK tax you paid on that income, but is it still IRA eligible income? Does this count?

2)On the same line of thought, and this is only a guess, but it would occur to me that if your salary is in the range where UK taxes are high (say over 45,000 pounds sterling--about 73,000 USD), then you might look into claiming all your income WITHOUT the exclusion. Assuming you will be able to offset UK tax against US tax, you might come out ahead in the long run---BUT there might be a limit to this offset, so please look into it first. If you did this, then I would think you'd be able to take advantage of other US tax deductions and an IRA offer....I think....consult an accountant on that one...

note: this post is in theory only and I'm curious to find out myself if this would work for us American workers outside the States.

thanks to anyone who can add addition info on this.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.