"The total of your health insurance deduction, 401k contribution, and IRA contribution can't exceed the amount of your net profit (Line 31 of Schedule C)."
Yes, as you have reconsidered, that statement is incorrect. IRA contributions are personal, not business-related. The total that cannot exceed net profit is the sum of the deductible portion of self-employment taxes, the self-employed retirement deduction and the self-employed health insurance deduction. The amount available to support an IRA contribution is net profit minus the sum of the deductible portion of self-employment taxes and the self-employed retirement deduction. The amount allocated to the self-employed health insurance deduction does not reduce the amount available to support an IRA contribution.
