I was under the suspicion (and a pretty reliable website I just found concurred) that if you are living abroad, and do not have any US taxable income (i.e. your income is under the foreign earned income exclusion) that you cannot contribute to an IRA/Roth IRA. Apparently this is a source of confusion, and many financial advisors do not realize this (mine was unsure when I asked him). If this is wrong, please let me know.
Based on this, I have two questions:
1. Since I lived in the US until Oct. 1 2006, and was working the entire time, I assume that I can still contribute to a IRA plan until the April. 15 2007 deadline. That contribution will be fore 2006, correct? And since I had taxable US income, I can contribute.
2. I have both a Roth IRA, and an IRA that I just set up to roll my 401K into when I left my job. Can I contribute $4,000 to BOTH accounts, or only one? Down the line I will roll them into one, but because of restrictions on the shares I have with the Roth, I have to wait a little bit.
Thanks in advance!
