When I was in Hawaii, I had a brilliant idea: since my Korean employer in Korea naturally doesn't a U.S. 401k program, I thought I'd set up a Roth IRA account.
Unfortunately, I can't. That is, unless I make more than $80,000 a year.
Because the first $80,000 of one's income earned overseas is pretty much (I'm not a tax lawyer) excluded from U.S. federal taxation, I don't have to pay any U.S. taxes. Thumbs up. However, unless I do pay U.S. taxes, I can't make a contribution to an IRA. Thumbs down.
So until I start making more than $80,000 (whereupon I would have to pay federal taxes), I can't do anything more regarding retirement.
If I was making $80,000 a year, believe me, saving up for retirement would be the least of my concerns. I don't like this IRA rule. http://origin.bankrate.com/brm/itax/tax_adviser/20030829a1.asp
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1 comment:
Well, just so you know, if you do eventually become a diplomat, we don't get that nice 80K perk abroad, though many states allow us to forgo state income tax (don't know where you're from). Thanks for your comment. Glad to find your blog.
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