FEIE + Roth or Trad IRA?

[aceofgod]

Im 27, claim FEIE, live outside the US, make $108,000, and return for about a month every year. In that month i get taxed on about 9,000$ of my income. I'd say there's a 50% chance I retire in Germany (maybe elsewhere) and not the US. I plan on retiring around 60.

I currently have a trad 401k which I match 5% with my company, and then put in another 4000$ unmatched into the ROTH 401k. This is all within my US taxable income.

Should I also open up an IRA? If so, ROTH or traditional?

Also should I put everything into my trad 401k or continue to split it?

 

[tiramisu]

@aceofgod I'm not an expert at all, so take what I have to say with a grain of salt.

I don't think you're eligible to contribute to a Roth IRA account if you're filing with the FEIE with that salary. To be eligible to contribute to a Roth IRA, your taxable income has to be equal to the amount you contribute to the Roth account. For example, you have to have a taxable income of $6000 if you want to contribute $6000 to that account. I believe this is true for Roth IRA accounts. I don't think that's related to Roth 401Ks, but I also don't know how they work.

And are you working for a US employer if you're able to get a roth 401K?

 

[aceofgod]

@tiramisu I have about $9000 in taxable income since the month I spend in the US is taxed. That's how much I've been contributing to my 401k.

Yes, it's a US employer, I'll contribute to it until I convert to 1099

 

[tiramisu]

@aceofgod ah gotcha, that makes sense!