Can Overseas Workers Contribute to IRAs?
My daughter is now working in Amsterdam for a European-based company. She’s wondering if she can continue to contribute to her Roth IRA or her individual IRA.
This is outside my area of expertise, so I consulted Rita Ryan of Wolf and Company. Here’s her response:
Yes, U.S. citizens living and working abroad can contribute to ROTH and regular IRAs. Taxable income remains the key factor. If you take the foreign earned income exclusion, you must add back the excluded amounts in determining compensation for purposes of IRA limits.