You cannot contribute to an IRA if the majority of your taxable compensation is excluded using the Foreign Earned Income Exclusion (FEIE) via Form 2555.
However, the FEIE is not a mandatory tax form and you can instead claim the Foreign Tax Credit (FTC) via Form 1116.
With MyExpatTaxes, our tax software will automatically ensure you take advantage of the best tax benefits for your unique situation.
For more information, see FEIE or FTC - which is right for me?.
Want to know in advance which benefit is the most advantageous for your individual situation? Get a personalized recommendation from our Tax Professionals in a few clicks with our FTC / FEIE Calculator tool.