Can Foreign earned income be contributed to a Roth IRA?

[Guest aguapreta]

My only source of compensation is foreign earned income. I usually deduct all of this via form 2555 and line 21 on form 1040. Can I still contribute to a roth ira? Or can I leave $4000 "unclaimed" as foreign earned income even though it was all earned overseas and then contribute the $4000 to my Roth IRA and a spousal Roth IRA. I have read Publication 590 (specifically page 4) on this, but a Roth IRA in not deductible like a regular IRA. I would appreciate some clarification on this and also if the IRS has heard any cases involving this question. It seems to penalize US citizens that work and live outside the USA.