Thank you for the response, however you did not address the main point of my comment of AGI vs MAGI.
From TurboTax:
To find your MAGI, take your AGI and add back:
- Any deductions you took for IRA contributions and taxable Social Security payments
- Deductions you took for student loan interest
- Tuition and fees deduction
- Half of self-employment tax
- Excluded foreign income
- Interest from EE savings bonds used to pay for higher education expenses
- Losses from a partnership
- Rental losses
- The exclusion for adoption expenses
Then:
Roth IRAs
To contribute to a Roth IRA, your MAGI must be below the limits specified by the IRS. If you’re within the income threshold, the actual amount you can contribute is also determined by your MAGI. If your MAGI exceeds the allowed limits, then your contributions are phased out.
I understand what you're saying but as stated above you are also assuming AGI without considering the addition of the excluded income to calculate the MAGI value.
