I disagree with the answer given regarding the ROTH IRA contributions and the Foreign Earned Income Exclusion. IRS Pub 590; Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes clearly shows that you add any foreign earned income exclusion and/or housing exclusion from Form 2555, line 45, or Form 2555-EZ, line 18 to generate the Modified AGI for Roth IRA contribution limits. This makes sense as the Foreign Earned Income exclusion is solely to avoid American expats being double taxed on their income in both the foreign country and the USA.
