Our family is contemplating a extended or permanent move to Germany. My husband would still be employed by his current, American, employer. I have found a lot of information pertaining to living abroad and being employed by a foreign employer, but not our situation (foreign home, American employer).
Last year we also lived abroad, however it was under 12 months and split between two calendar years, so our tax situation remained the same.
So far it's my understanding that we would receive a federal tax credit for any German taxes paid. I'm unsure whether his income would fall under the foreign earned income exclusion. Also, perhaps if someone is in a similar situation, I'm unsure if we would have to pay German taxes on 401K and traditional IRA contributions.