Should I stop my Roth IRA ? I am US living abroad claiming foreign earned income exclusion. Yearly salary 20,000. Last year started Roth IRA in 2017. Tax advice?

cruisebysail · ‎June 6, 2019

Monthly deposit 100US to Roth IRA only.

Started Roth IRA in 2017

Live in Southeast Asia and employer is local citizen.

Best Advice to file for 2017 tax year.

Many Thanks

maglib · ‎June 6, 2019

It all depends on if you hit the fgn earned income limits. Only so much fgn earned income is excluded from US Wages. If you are under the cap then you paid no US taxes on the earnings so you are not eligible to contribute to a Roth. If you exceed the earned income limits then the IRA Phase out limits may apply. The fgn earned income exclusion for 2017 is $102,100, Phase-out starts at $118,000; ineligible at $133,000.

If you had excess contributions, make sure to notify the broker and have excess plus any income withdrawn by 4/15/18 or you may be subject to excise taxes.

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Should I stop my Roth IRA ? I am US living abroad claiming foreign earned income exclusion. Yearly salary 20,000. Last year started Roth IRA in 2017. Tax advice?