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If client has a MAGI over $125,000 from pensions and investments, and has a small business, is he still allowed an IRA deduction?

newtoyou
Level 1
 
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2 Comments 2
IRonMaN
Level 15

He needs earned income to qualify for an IRA contribution.


Slava Ukraini!
qbteachmt
Level 15

"and has a small business, is he still allowed an IRA deduction"

How small is Small? Is that already in the MAGI? Is there an SEP plan? The IRS has some great resources:

https://www.irs.gov/retirement-plans/2021-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

https://www.irs.gov/retirement-plans/2021-ira-deduction-limits-effect-of-modified-agi-on-deduction-i...

 

A helpful suggestion: Next time you start a topic, it would be helpful to use the Title for Title, and put the content in the input panel.

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