IRA rules to considerAn American expat can hold onto their traditional or Roth IRA while living abroad, though there are some added complications to think about. A traditional IRA is funded with pre-tax dollars, meaning it can lower your current tax bill similar to how 401(k)s do. A Roth IRA, on the other hand, is funded with after-tax dollars. To make the full contribution to a Roth IRA, your MAGI must be below $153,000 for single filers or $242,000 for married couples filing jointly. These rules still apply when you move abroad — but tax exclusions and credits, as well as local tax laws make this much more complicated to calculate.