# For US citizens - Claiming FEIE and contributing to an IRA



## daled1 (May 15, 2013)

Lets say I am self employed and make 90k a year and can claim the full amount under the FEIE so I pay no income tax. ( I know I still have to pay SE tax though). Now normally I can't contribute to an IRA because income that falls under the FEIE is not allowed to be contributed to an IRA. But I think I may have a way around this.

This is a bit tricky so bear with me.

But lets also say I spend 30 days a year in the USA and am working the entire time. So when I go to pay my taxes I conclude that 30/365 * 90k = 7397 is taxable. Is that right? So I am supposed to pay income taxes on this?

If so, I can contribute 5k to an IRA then, correct?

But here's another tricky thing, Since 7397 is less than the standard deduction, I won't have to pay any taxes at all, correct? But will I be able to contribute to an IRA then?


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## Bevdeforges (Nov 16, 2007)

Technically it seems to fit the requirements. Best way to test it out is to try it and see if the IRS reacts. 
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

I don't think the IRS will have a problem with that idea considering their own example.


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