Contributing to a Roth IRA from overseas earnings

[Guest N. Whyte]

I am a 26year old us citizen (with dual nationality). I'm working in the US at the moment but am planning to work abroad in the future. Can anyone tell me if I am eligible to establish a Roth IRA and contribute to it from my overseas earnings?

Thanks

[Michael Devault]

According to IRS Publication 590, compensation doesn't include "Any amounts you exclude from income, such as foreign earned income and housing costs."

If you work for a US company overseas, they report your income on a W-2 and you pay US taxes on it, you should be able to use it for Roth IRA contribution purposes. Otherwise, you can't.

Hope this helps.