I have a client that is over the income limitations for Roth contributions. His income was all earned overseas (Iraq) and he is non-military. Does anyone know of any rules that would allow him to exclude this income in the Roth limitations?
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Yes
Yes, someone knows. Not me.
But, it may entirely rest upon whether your client qualifies for the foreign income exclusion. If he does not have to count the amount of excluded income, then his AGI might be low enough for him to qualify.
I'll have to give him kudos and I don't begrudge a single penny of his high income. Imagine the money these contractors are making if they can afford to pay people to risk getting blown up by some 11-year old kid with a bomb strapped to him. -
The foreign income exclusion does not apply for Roth limitations. The amounts are included in the total income number for Roth purposes. I'm wondering if anyone knows of any reasons why they wouldn't be.Comment
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You are so right
My apologies TaxDude - the "Modified" AGI is spelled out in TTB for purposes of applying the ceiling for Roth.
I don't see anything else that would give relief. Someone in Congress might be talked into a "technical correction" for someone serving in a combat area, but if so it probably wouldn't apply to non-military.Comment
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