Roth IRA confusion

I apologize ahead of time for my financial illiteracy.

I am an American living in Taiwan currently, and most likely for the foreseeable future. I have been researching the best way to save for retirement. It seems for my income level, continuing to add to a Roth IRA I set up years ago while living in the states is my best choice. However, as someone who claims the Foreign Earned Income Exclusion every year on my taxes, I have an adjusted gross income of $0. I’ve been reading that since I don’t have any income that has/was or is taxable by the US government–taxable compensation, I am not allowed to make a contribution to a Roth IRA.

I am assuming others have been in this boat before. Should I just contribute to a Roth IRA and cross my fingers that the IRS doesn’t find out? When bringing this up to my expat teacher friends that also have IRA’s, they seemed oblivious to this finding and just told me to contribute anyway.

Or is there a better way? Such as adding extra income to your tax return? Adding $3000 in gambling income, letting the government tax it, so that I can make a $3000 Roth contribution sort of thing.

I appreciate your help

You are correct on all counts above except that gambling winnings are not earned income and do not qualify you for Roth contribution. Don’t let the fact that it is reported on a W2-G confuse you. You do have the option of taking the credit rather than the exclusion, but this likely negates the tax benefits of a Roth altogether.
You could sell stuff on Amazon, or do some digital consulting work, but then you will be paying the 15% employment tax.
Your best bet is an after-tax account such as an annuity or a REIT in a hot market. Lots of creative options out there. Good luck. PM me if you have further questions.

You should sit down and go through a tax form and see if you can still owe nothing if you use the Foreign Tax credit. For instance, you might have a low salary (according to government documents) and be eligible for some deductions (for instance, if you have kids, you can file as Head of Household and deduct some income for each child). Then if you file declaring your Taiwanese income and still owe no taxes, then you can fund a Roth IRA.

You shouldn’t use the Roth–it’s illegal and it will be a hassle if you have trouble (you’ll pay penalties). You can just buy regular mutual funds–that’s what we do (you will probably have to list a US address and Vanguard and Fidelity are the two best starting points). If you are back in the US part-year then in those years you can contribute to a Roth when you have taxable income. The best US do-it-yourself financial site is probably bogleheads.