IRA Contribution Eligibility Calculator for US Expats (2026)

The Foreign Earned Income Exclusion (FEIE) is one of the most powerful tax breaks available to US citizens abroad — but it comes with a costly side effect: once you exclude all of your earned income under §911, the IRS treats you as having zero compensation for IRA purposes. No traditional IRA. No Roth IRA. And even expats who have IRA compensation can still be blocked from Roth contributions by a separate MAGI trap that adds the excluded income back. This calculator shows exactly where you stand.

Why FEIE Kills IRA Contributions

The IRS requires "compensation" to make an IRA contribution — defined in IRC §219(f)(1) as earned income not excluded under §911. When you elect FEIE and fully exclude your foreign wages or self-employment income, none of that income qualifies as compensation for IRA purposes. You may have $120,000 of actual earnings but $0 of IRA-eligible compensation. The contribution door closes.

This is not a loophole or an edge case — the IRS enforces it. Filing a traditional IRA contribution in a fully-FEIE'd year creates an excess contribution subject to a 6% annual penalty until corrected.

The partial FEIE strategy

FEIE is not all-or-nothing. You can elect to exclude less than the $132,900 maximum, intentionally leaving a small amount of earned income on your US return as compensation. Leaving $7,500 (or $8,600 if age 50+) on the return costs roughly $750–$900 in federal income tax at the 10% bracket but preserves full IRA contribution access for the year. Over a 20-year career abroad, this strategy can preserve $150,000+ in IRA contributions — and their compound growth.

The Roth MAGI Trap: Why $0 AGI Doesn't Mean Roth Eligibility

Even expats who use FTC instead of FEIE — keeping their earned income in AGI — may assume that staying below the Roth income ceiling is easy. But expats using FEIE face the opposite surprise: IRC §408A(c)(3)(C)(i) requires that MAGI for the Roth contribution test be calculated by adding back any §911 exclusions.

The practical effect: if your total earned income is $180,000 and you exclude $132,900 via FEIE, your regular AGI is $47,100. But your Roth MAGI is $180,000 — above the $168,000 single-filer ceiling. You cannot make a direct Roth IRA contribution regardless of how little you owe in taxes.

The calculator above handles this correctly. Many popular tax software programs do not flag this — it is a commonly missed error.

FTC vs FEIE: The IRA Dimension

Foreign Tax Credit users have full IRA access. If you earn $150,000 working in Germany and claim FTC instead of FEIE, your full $150,000 remains "compensation" for IRA purposes. Roth MAGI is also not distorted by a §911 add-back (because you didn't use §911). The only Roth barrier is whether your actual MAGI (AGI) exceeds the phase-out range — and the high German tax rate often keeps US liability near zero anyway.

For many expats in high-tax countries, the math on FEIE vs FTC includes the IRA contribution value: if switching from FEIE to FTC costs $800/year in additional US tax but preserves $7,500/year in IRA contribution room worth $1,500+ in long-term wealth, FTC wins on the combined calculation. The FEIE vs FTC calculator models the tax cost; add the IRA value to the comparison.

Roth Conversions: The Door That Stays Open

Even when direct Roth IRA contributions are impossible — either because FEIE eliminates compensation (§219(f)(1)) or because Roth MAGI exceeds the ceiling — Roth conversions remain available. Conversions move existing pre-tax IRA or rollover IRA balances to Roth. They require no earned income and have had no income ceiling since 2010. For expats with pre-departure traditional IRA or 401(k) assets, the FEIE conversion window (near-zero tax bracket room) is an attractive annual opportunity. See the Roth conversion window calculator for expats.

Backdoor Roth IRA for Expats

If your Roth MAGI is above the phase-out ceiling but you have IRA compensation (earned income exceeds FEIE election), the backdoor Roth is available: contribute to a non-deductible traditional IRA (no income limit on contributions, only on deductibility), then convert to Roth immediately. The "pro-rata rule" applies if you have existing pre-tax IRA balances — the conversion is partially taxable in proportion to the pre-tax share. Clean backdoor Roth requires either no existing traditional IRA balances or rolling those balances into a current employer 401(k) first.

1. IRS IR-2025-285 — 2026 IRA contribution limits: $7,500 (under 50) / $8,600 (age 50+); Roth IRA phase-outs: single $153K–$168K, MFJ $242K–$252K; traditional IRA deductibility phase-outs: single covered $81K–$91K, MFJ covered $129K–$149K, MFJ non-covered/spouse covered $242K–$252K.
2. IRC §219(f)(1) — compensation for IRA contribution purposes is earned income reduced by any amount excluded under §911 (FEIE) and §931/§933.
3. IRC §408A(c)(3)(C)(i) — Roth IRA MAGI for the contribution phase-out test is computed by adding back any §911 exclusions (and §931/§933 exclusions) that reduced AGI. This is the statutory basis for the Roth MAGI trap described on this page.
4. IRS Notice 2025-67 — 2026 FEIE maximum exclusion: $132,900.
5. IRC §219(g) — traditional IRA deductibility phase-out MAGI computation. Unlike the Roth test under §408A, the §219(g) MAGI for traditional IRA deductibility does not add back §911 exclusions — the phase-out applies to regular MAGI (close to AGI for most filers).
6. Values verified June 2026. This calculator provides directional estimates. Actual IRA eligibility depends on total compensation, other income, filing status elections, and state law. Consult a qualified US expat tax specialist before acting.

This tool provides informational estimates only. Individual results depend on facts and circumstances not captured here. Neither ExpatAdvisorMatch nor the professionals in our network provide tax preparation services — they provide financial planning advice that coordinates with your expat CPA.