Can I take the FEIE and still fund a ROTH

I looked back at my last return and I think that it might be possible for a lot of US expats to do a ROTH even if they use the FEIE as your ROTH contribution is calculated based on your Modified Adjusted Gross Income which is your Adjusted Gross Income (AGI) PLUS your FEIE and housing exclusions. The IRS taxes you on your AGI which might be quite small, or nothing in my case, if you take the FEIE, but then you get to add that back on for purposes of calculating the amount you can put in a ROTH.

This seems a bit too good to be true, am I missing something?

You'd need to claim the benefit of the treaty on your UK tax return to avoid the UK taxing the underlying growth (unless you are paying the £30,000 charge).

I'd have to research the treaty to see if this is possible though to be certain.

You'd need to claim the benefit of the treaty on your UK tax return to avoid the UK taxing the underlying growth (unless you are paying the £30,000 charge).

I'd have to research the treaty to see if this is possible though to be certain.

As the ROTH is a retirement fund I think it's covered in the treaty and the gains are tax free and so are withdrawals as long as they are within the rules of the ROTH.

I'm more concerned with whether ROTH contributions are actually allowed even if you use the foreign earned income exemption to reduce your AGI to zero because you then add your FEIE to your AGI to get the MAGI.......If this is the case it seems like something that US expats should take advantage of.

Just because the treaty may allow something this "something" would still have to b claimd annually on a UK tax return.  Roth IRAs are indeed covered to a degree in terms of distributions, so I suspect you are right on growth but this would only be sensible if claiming the entire treaty annually on a UK makes for the better answer.

Just because the treaty may allow something this "something" would still have to b claimd annually on a UK tax return.  Roth IRAs are indeed covered to a degree in terms of distributions, so I suspect you are right on growth but this would only be sensible if claiming the entire treaty annually on a UK makes for the better answer.

That's what I do, I claim the treaty provision for the tax free status in the US applying in the UK too. 

I'd still be interested to know if expats can fund a ROTH even if they use the FEIE and hence have no US taxable income, but have MAGI when they add their foreign income