How can expats contribute to their US Roth IRA? First let’s look at what an IRA is:
Roth IRA: You can make monetary contributions that already had taxes paid (i.e.: after-tax). From this, your earnings and withdraws can potentially be tax-free (as long as you meet certain conditions). You can learn more about it thru this link IRS page.
To determine your IRA contribution limit, you’ll need to look at your filing status, taxable compensation, and adjusted gross income (AGI). You are either eligible for the maximum amount, a reduced amount, or not eligible at all from these three factors. Check out this calculation from TIAA to see how much you can contribute.
Keep in mind: When you use FEIE (Foreign Earned Income Exclusion), this might mean that ALL of your compensation is excluded from US taxation, therefore you have $0 taxable compensation.
Adding Roth IRA contributions on the MyExpatTaxes software
To add your contribution to the software, you’ll need to select the “IRA Contributions” tab on the navigation panel left of the page:
Then select “Yes” to the following questions below:
Then, choose ROTH IRA to input your contribution details:
Once selected, you can choose the following option that applies to you: