Job Discussion Forums

rollerblader · Joined: 01 Jul 2014 Posts: 20

I have a question for all you moneyed Americans there in Saudi. I have several hundred thousand Dirhams buried out back of the villa here in Abu Dhabi. Does any American know how I can legitimately put any of that in any sort of specialized IRA.

Please help me keep a clean shovel.

Roller

cnthaiksarok · Posted: Mon Mar 14, 2016 3:27 pm Post subject:

I'm about as far away from an expert as one can be in these matters and would appreciate it tremendously if someone with some knowledge came along and put a knowing feather in this....

I've been feeding my portfolio for a couple of years and looked into opening an IRA - and what I was led to believe is that it's not possible to do with non-taxable income.

This year the tax exclusion for foreign income is 100,800.
Sadly, I'm a bit under that.

I am of the belief (maybe incorrect) that in order to open the IRA one would have to exceed the above amount by a fixed (tho slightly variable by year) amount. Get taxed on that amount (or would it be your entire amount - once you've gone over the threshold(?) and then feed the IRA.
<pant, cough, wheeze>

From the time.com/money:

"If you're younger than 50, your contributions to a traditional IRA or a Roth IRA, in 2014, are limited to $5,500 or the total of your taxable compensation, whichever is smaller."

Best of luck.

PS: I also hit a dead end in terms of finding a pay into my own social security....

anyone?

nomad soul · Joined: 31 Jan 2010 Posts: 11454 Location: The real world

The Roth IRA is an option. However, there are IRS rules regarding IRAs and foreign-earned income. I suggest you consult with a tax expert for advice specific to your finances and tax status.

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

I answered on your UAE thread... definitely no IRAs...

VS