@sbwalling -
To calculate MAGI the Foreign earned income is included.
However, Foreign earned income is NOT taxable compensation for contributing to an IRA if it has been excluded from income on your tax return.
See IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) page 6 - <a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=6">https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=6</...>
"What Isn’t Compensation?"
"Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs."
See IRS website for IRA contributions - <a rel="nofollow" target="_blank" href="
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...>
"For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:
$5,500 ($6,500 if you’re age 50 or older), or
your 'taxable compensation' for the year, if your compensation was less than this dollar limit."
