Question 1

Can I contribute to a Roth IRA while living abroad?

Accepted Answer

Yes, but with an important catch: you need earned income that is not fully excluded by the FEIE.

If you exclude all your foreign earned income using the Foreign Earned Income Exclusion (Form 2555), your taxable compensation becomes $0 — meaning you have no eligible income to contribute to a Roth IRA for that year.

Options available to expats:

1. Limit your FEIE claim: If your income exceeds the $126,500 exclusion limit (2024), remaining taxable earned income can support Roth IRA contributions...

Question 2

Can I contribute to an IRA or 401(k) while living abroad?

Accepted Answer

Yes, you can contribute to an IRA or 401(k) while living abroad, but there are important restrictions to understand.

**IRA Contributions**: You can contribute to a Traditional or Roth IRA only if you have earned income that is NOT excluded under the Foreign Earned Income Exclusion (FEIE). This is a critical point: if you use FEIE to exclude all of your foreign income, you may have zero 'includible compensation' and therefore cannot contribute to an IRA. The contribution limit for 2025 is $7,000...

Retirement & Investments

Can I contribute to a Roth IRA while living abroad?

Can I contribute to an IRA or 401(k) while living abroad?

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