ROTH contribution limit, self-employed

[iwaldner]

My only earned income is from the profit of my self-employment.  What counts as the profit for this purpose: Schedule C line E5 ("allowable Sch C profit") minus E6b ("1/2 self employment tax deduction") ? 

or  Schedule C line E5 ("allowable Sch C profit") minus E6b (1/2 self employment tax deduction) minus 6a ("Self employed health insurance") ?

Turbo tax seems to think it's the first option. Is that correct?

[Irene2805 · Accepted solution]

Yes - TurboTax is correct.  Self-employed health insurance is not part of the calculation.  A  self-employed individual's eligible compensation is determined after the deductions for:

• SE tax; and
• the self-employed individual's deductible plan contribution.

For additional information and worksheets, please see IRS Pub. 560 - Retirement Plans for Small Business