dmertz
Level 15

Retirement tax questions

You must also subtract from net profit anything reported on Schedule 1 line 14 as a self-employed retirement deduction, but with, say, $45k of net profit and a maximized self-employed 401(k) contribution there would still be a enough compensation from self-employment remaining to support $6,xxx of IRA contribution.

 

Note that income excluded as foreign earned is not permitted to be used to support an IRA contribution.