Yes, US expats can contribute to a Roth IRA while living abroad — but only if they have eligible earned income that has not been fully excluded using the Foreign Earned Income Exclusion (FEIE). If you claim the FEIE on Form 2555 and exclude all of your foreign earned income, your eligible compensation for IRA purposes drops to zero, and you cannot contribute. However, if your earned income exceeds the FEIE threshold, or if you choose not to claim the exclusion (for example, if you live in a country where taxes are higher than in the US, so take the foreign tax credit instead of the FEIE), you may still be able to contribute up to the annual limit, subject to the standard Roth IRA income phase-out rules.
How the Foreign Earned Income Exclusion Affects Your IRA
If you meet either the bona fide residence test or physical presence test, the FEIE shelters a certain amount of your earned income from US taxes. The exclusion amount is US$132,900 in 2026, and has been adjusted annually. As this earned income has been "excluded", it can not count as earned income that could be contributed to an IRA, Traditional or Roth.
What Income Counts for Roth IRA Eligibility?
Earned income means income you earn from working, generally in the form of salaries or bonuses. It does NOT include interest income, dividend income, rental income, or capital gains. Also, as mentioned earlier, in order to be contributed to an IRA, you must have earned income that has not been excluded by the FEIE, either because you do not claim the FEIE, or because you have earned income over the FEIE amount.
Roth IRA Income Limits and Phase-Outs
For US expats who take the FEIE in 2026, they need to not only consider that their earned income needs to be above the $132,900, but in order to contribute to a Roth IRA through the "front door", your modified adjusted gross income (MAGI) also needs to be below $153,000 if single, or below $242,000 if married filing jointly, in order to make contribute the full $7,500 (or $8,600 for those aged 50+) to an IRA. This provides a relatively narrow window to "front door" contributions, especially for single filers, but as the term suggests, there still is a "back door".
Alternatives If Your Income is Too High for a "Front Door" Roth IRA
A "back door" Roth IRA is simply a way of getting money into a Roth IRA if your MAGI is above the limits stated above. This is done by contributing to a traditional or non-deductible IRA, which are not subject to MAGI limits, and then promptly converting this contribution to a Roth IRA through a Roth conversion. Here is where expats often enjoy a significant advantage over those back in the homeland: if you work overseas and are not covered by a US qualified retirement plan like a 401(k), then you can make tax-deductible contributions to a Traditional IRA, rather than having to contribute to a non-deductible IRA. This may not seem like an advantage given that the Roth contribution is still taxable, but this avoids the complexities of the pro-rata rule, often faced by those with both Traditional IRA balances and non-deductible contributions they want to convert through the back door.
Important: Different Foreign Countries Treat US IRAs Differently
One important reminder here: everything on this page only considers the IRA rules on the US side. Don't forget to also consider how your current country of residents treats IRA contributions, accounts, and withdrawals. Roth IRAs offer tax free growth and withdrawals on the US side, but if the country you plan to retire in will tax those withdrawals anyway, that is not much of an advantage. Make sure to check applicable tax laws and treaties and consult a local tax advisor, or ask us for a referral.
Frequently Asked Questions
- Can US expats contribute to a Roth IRA while living abroad?
- Yes, as long as you have eligible earned income that is not fully excluded by the Foreign Earned Income Exclusion, and your modified adjusted gross income falls below the Roth IRA income limits.
- Does the Foreign Earned Income Exclusion affect Roth IRA eligibility?
- Yes. If you exclude all of your earned income using the FEIE (Form 2555), you may have zero eligible compensation for IRA purposes, which would prevent you from making contributions. However, if your earned income exceeds the exclusion amount, the excess can support IRA contributions.
- What are the Roth IRA income limits for US expats in 2026?
- For 2026, full-sized "front door" IRA contributions can be made by single filers with a modified adjusted gross income (MAGI) below $153,000 if single, or married joint filers with less than $242,000. These numbers have been adjusted annually, so check the IRS website for the current year's thresholds. These limits apply to US citizens and residents regardless of where they live. That said, expats with higher incomes, or married filing separately, may still consider "back door" Roth IRA contributions.