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Can a person with foreign income contribute to a Roth IRS without penalty

470pitt
Level 2

I used the 2555 form but it is calculating that there is a penalty

the 2555 is for 50,000 and the he contributed 6500 and the

wife worked showing only 7900 in come and she is not being penalized

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TaxGuyBill
Level 15

Please keep your questions to one thread:

https://accountants-community.intuit.com/questions/1826855-is-it-correct-that-a-penalty-is-being-cal...


They must have "taxable compensation" in order to contribute to an IRA.  So excluded income does not count.  So if they have no "taxable compensation" (such as non-excluded wages or self employment income), they are not allowed to contribute to an IRA.

If they some wages or self employment income that is not excluded, they can contribute to an IRA up to the amount of taxable compensation (or the $5500/$6500 limits).


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3 Replies 3
Just-Lisa-Now-
Level 15
Level 15
If you excluded the income.....how can they contribute to ROTH with no earned income?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Terry53029
Level 12
Level 12
is the foreign income earned, and taxable ?
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TaxGuyBill
Level 15

Please keep your questions to one thread:

https://accountants-community.intuit.com/questions/1826855-is-it-correct-that-a-penalty-is-being-cal...


They must have "taxable compensation" in order to contribute to an IRA.  So excluded income does not count.  So if they have no "taxable compensation" (such as non-excluded wages or self employment income), they are not allowed to contribute to an IRA.

If they some wages or self employment income that is not excluded, they can contribute to an IRA up to the amount of taxable compensation (or the $5500/$6500 limits).


View solution in original post

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