Hello Retire Japan. Question for you. I know US citizens cannot both take the foreign earned income exclusion and contribute to an IRA. I already have a rIRA funded from wages while working in the US. Of course I'm not contributing to it now that I live in Japan.
Once I am old enough to make withdrawals, will I face any problems simply for living overseas? Is there anything else I should be aware of?
Already Have IRA
Re: Already Have IRA
Keep in mind you can contribute to an IRA while working/living if you still have left-over “earned income” after taking the FEIE. No penalties from a US perspective on taking withdrawals from the IRA during retirement while living overseas (Roth of course doesn’t get taxed) as long as you meet the age or SEPP requirements.