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eligibility for IRA contributions for USA citizens living abroad?

can i contribute to an IRA if I am USA citizen, but not a USA resident for tax purpose  that year? 

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3 Replies
PaulaM
Expert Alumni

eligibility for IRA contributions for USA citizens living abroad?

Depends on your income.

 

If you are claiming the foreign income exclusion, it will limit your ability to contribute to an IRA. If you exclude all of your income and have no other sources of earned income, you are not eligible to contribute to an IRA.

 

However, if you only exclude part of your income, or claim the foreign tax credit instead, you may still be able to contribute to an IRA.

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eligibility for IRA contributions for USA citizens living abroad?

Thx a lot!  Very helpful.  unfortunately, this answer does not completely answer my question because the specific situation is a bit complicated.  Let me  explain: the question is about the spouse of a couple (both USA citizens) who is currently living abroad (and hence domiciled abroad) , while the other spouse has remained in the USA.   The couple's joint 2017 tax return has a substantial amount of taxable income (even after any foreign income exception).  So, in that case, can the spouse living abroad make a 2017 IRA contribution?  (given that there is taxable income in their joint tax return)... Please advise.  thx again! 

PaulaM
Expert Alumni

eligibility for IRA contributions for USA citizens living abroad?

As stated above, if the you have earned income over the excluded amount, then you can contribute to an IRA.

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