Individual Retirement Arrangements Contributions to your individual retirement arrangements (IRAs)that are traditional IRAs or Roth IRAs are generally limited to thelesser of $2,000 or your compensation that is includible in your grossincome for the tax year. For example, do not take into accountcompensation up to the amount of your foreign earned income exclusionand foreign housing exclusion, if any. Do not reduce your compensationby the foreign housing deduction. If you are covered by an employer retirement plan at work, yourdeduction for your contributions to your traditional IRAs aregenerally limited based on your modified adjusted gross income. Theadjusted gross income shown on your return is modified by figuring itwithout regard to the foreign earned income exclusion, the foreignhousing exclusion, or the foreign housing deduction. Othermodifications are also required. For more information on IRAs, seePublication 590.