Author Topic: Will VTSAX purchase affect my foreign earned income exclusion (FEIE)?  (Read 635 times)

rudimentsofgruel

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Hello,

I'm moving to New Zealand to work and will become a NZ resident, eligible for the $101,300 FEIE. I have a Vanguard account with some IRAs and will probably want to invest portions of my NZ income into that (if anyone has recommendations for changing NZD to USD, I'm into that too).

First question: as I will no longer technically be a US resident, will I still be able to buy VTSAX, especially since Vanguard isn't available to NZ residents?

If I do, will that affect my eligibility to claim the FEIE?

As a tangential question, if my income falls below the FEIE, can I then do a Roth Conversion up to the standard deduction, assuming I have no additional US income? Actually, it is my understanding that I can earn income from a US source and if I pass the physical presence test or the de-facto resident test, that income will within the FEIE, so perhaps I can do a Roth Conversion UP TO the FEIE?? I suppose it's possible that I'd then just be taxed by NZ on that conversion.