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Net SE income: Roth 401k, IRA, and health insurance deductions
Let's say
- you have about $10,000 in net self-employment income (Sch C).
- your healthcare premiums are $10,000, and you're not covered by any other health insurance
- you're married-filing-jointly with a MAGI < $104,000 as per https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-l...
Can you do all of the following?
- Open a solo Roth 401k and contribute $10,000 [presumably leaving S1 ln 15, the line for self-employed retirement plan deducitons, blank as it's a Roth]
- Also deduct $10,000 in healthcare premiums [S1 ln 16]
- Also contribute $10,000 to IRAs (e.g. $6k to yours, $4k to spouse), and if traditional deduct on [S1 ln 19]
It feels too good to be true...
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‎September 28, 2021
8:16 AM