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Hello and thank you for using Just Answer,Most 529 plans are available to any U.S. citizen or resident alien of legal age who wants to open an account. You must have a Social Security number or Tax Identification number and a valid physical address within the United States or Puerto Rico. The student for whom you're saving (the beneficiary) can be anyone (including yourself) and must also have a Social Security number. There are generally no state residency requirements or income restrictions in 529 plans (with the exception of a handful of prepaid plans).
Generally, compensation is what you earn from working. Any amounts you exclude from income, such as foreign earned income and housing amounts, are specifically identified by the IRS as not being taxable compensation for this purpose. So ROTH contributions would not be allowed if the income earned abroad is excluded from US taxation.
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The earnings of both the husband & wife exceed the maximum allowable Foreign Earned Income Exclusion. Therefore the excess is reported as taxable compensation per line 7 of Form 1040. That said, wouldn't they each be allowed to make Roth IRA contributions? ,