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    teperd2's Avatar
    teperd2 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 16, 2007, 12:44 AM
    IRA contributes with no earned income
    Hello, I'm a 54-year old U.S. Navy retiree living and working overseas. Based on the exclusion of foreign income, all my foreign earnings and Navy retirement pay gives me NO earned income and I therefore can't contribute to my stateside IRA.

    I saw in a previous post about Self-Employment Plan (SEP) IRA, a SIMPLE plan, a profit sharing plan or even a 401K. The SEP doesn't apply to me, and I haven't investigated the SIMPLE plan or a 401K.

    I have a pension plan with the people I work with, but have some extra money I would like to put into a tax-free savings vehicle for retirement. I've heard about self-directed trusts and am now just starting to look in to them to see if they might be a fit.

    Any advice would be appreciated. Rick
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 20, 2007, 12:04 PM
    Rick:

    You have earned income, but, because of the foreign income exclusion, your income is NOT taxable. Hence, no IRA.

    Sorry!
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