Bob and Betty have two kids. Bob works two part-time jobs and has a small amount of self-employment income. Betty works one part-time job. They have previously been on Medicaid and their kids are covered by CHiP. Their MAGI is slightly too high to maintain their Medicaid qualification.
1. Can they make a tax deductible contribution to a pretax IRA, and reduce their AGI. Is that an add-back to the Medicaid MAGI? I think not, but I want to double check.
2. I believe that 401(k) contributions are never an add-back even to IRS MAGI, or Medicaid MAGI. What are the requirements, broadly speaking, for Bob to have a self-employed 401(k)?