The Expat Sage Podcast

How U.S. Expats Should Use FEIE, FTC, and Roth Accounts For Tax-Free Growth

The Expat Sage

Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.

0:00 | 15:33

We break down how FEIE and FTC truly work for expats and show how that single choice drives IRA eligibility, Roth versus traditional value, and long-term taxes. We end by stressing the employer match tax “time bomb” and how to plan around it.

• FEIE erases income and often blocks IRA eligibility
• FTC records income and enables IRA contributions
• Roth 401k as first priority for most expats
• Low-tax countries favor FEIE and Roth 401k focus
• High-tax countries favor FTC and open Roth IRA options
• Backdoor Roth steps and the pro rata rule warning
• 2025 401k, IRA, and catch-up limits and strategy
• Employer match grows tax-deferred and is taxable later

For a thorough presentation, you can simply read the article Roth 401(k) and IRA. If you have questions, contact us.

Moving, Working, and Investing for Americans Abroad