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Full Version: Determining Income that qualifies for ROTH IRA contribution
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Larry S
Situation. Single person makes $90,000 from employment, contributes 15% to 401K.
Also has private practice that earns $9,000 and contributes 13% to SEP.
so: Total income = 90K + 15 K = 105 K
retirement contrib =
90K x.15 = 13,500
9K x.13 = 1,900 totals 15.4K
so would AGI, or MAGI, = 105-15.4= 89,600
and thus would be full eligible for Roth contribution. help appreciated. thanks larry
BPickerCPA
Your first problem is that you overfunded the 401(k).
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