I'm not totally sure how the MAGI is calculated. For Example I have dividends (1099-DIV) that have created a cash balance of $918.82 over the last 2 years (not just 2016), and I don't know if that's included as income for the MAGI.
Here is the breakdown of the sources of my income:
W2 $ 19,962
Tax Refunds $? 186
1099-INT $? 16
1099-DIV $? 1,860
HSA Dist. $? 544
Total $? 22,568
I realize that the contribution limit for an traditional IRA is $5,500. I guess I'm hoping some of this income doesn't count toward the MAGI. Please help!
For Medicaid purposes, MAGI is adjusted gross income (AGI) plus these, if any:
untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest.
A contribution to your Traditional IRA (same as Deductible IRA) does reduce your Medicaid MAGI. Contributions to a Traditional 401k also reduce your Medicaid MAGI.
Yes, elective deferrals to a 401(k) would reduce your W-2 taxable income (or would provide you with a self-employed retirement deduction) that would reduce your AGI and therefore reduce your both your Medicaid MAGI and your traditional IRA deductibility MAGI.