- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
If this self-employment income is your only compensation, you've made an excess contribution. The amount of self-employment income available to support any type of IRA contribution is net earnings from self-employment. Net earnings are net profit minus the deductible portion of self-employment taxes.
With regard to the modified AGI limit for determining eligibility to make a Roth IRA contribution, AGI includes only net profit.
The business's gross income is irrelevant with regard to this.
March 31, 2021
8:59 AM