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Posted by Mike on June 11, 2008, 3:11 pm
Hi. I'm an American who moved to Norway this year, and I now work for
a Norwegian company. Does that make me ineligible to contribute to my
Vanguard IRA?
Thanks!
Mike
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Posted by on June 11, 2008, 5:16 pm
> Hi. I'm an American who moved to Norway this year, and I now work for
> a Norwegian company. Does that make me ineligible to contribute to my
> Vanguard IRA?
You're still an American citizen and you're still paying
American income taxes, yes? If so, MAYBE you can still
contribute.
You may contribute up $5000 or the amount of your taxable
compensation for the year. See IRS Pub 590 for more details.
The complication is that "compensation" in this case does,
in fact, exclude any foreign earned income IF you exclude
that income from your tax filing using the "foreign earned
income exclusion".
Pub 590 - on compension:
<http://www.irs.gov/publications/p590/ch01.html#d0e979>
Foreign Earned Income Exclusion:
<http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html>
Impact on IRAs:
<http://www.irs.gov/businesses/small/international/article/0,,id=97137,00.html>
Contributions to your individual retirement arrangements (IRAs) that
are Traditional IRAs or Roth IRAs are generally limited to certain
annual dollar limits (See Publication 590) or your compensation that
is includible in your gross income for the tax year. Therefore, do
not take into account compensation up to the amount of your foreign
earned income exclusion and foreign housing exclusion, if any. Do
not reduce your compensation by the foreign housing deduction.
Also, pub 54, Tax Guide for US Citizens and Resident Aliens Abroad:
<http://www.irs.gov/publications/p54/index.html>
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Posted by Mike on June 12, 2008, 3:25 pm
Ok, so it looks like I CAN contribute, and I'm limited to the smaller
of $5000 or my salary minus the foreign income exclusion, yes? Cool,
thanks.
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
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