Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 6110

Personal Investments • Can You Double Dip to Justify Mega Backdoor Roth and Roth IRA Contributions?

$
0
0
Yes. You can do the same if you are a W2 employee, as your after tax and Roth 401(k) contributions still appear in box 1.
Thank you. So why am I seeing answers like this one on MySolo401k.net's forum?

https://mysolo401k.net/mycommunity/foru ... ontribute/

"provided that one can’t use the same compensation to justify compensation to both a Solo 401k and IRA"

And I see some other similar responses there. They are very expert on these subjects. So I'm hesitant to just disregard their answers. Hopefully I'm just misunderstanding something.
Are they talking about pre-tax 401k contributions?

Because this section of pub 590-A seems unambiguous:
Self-employment income. If you are self-employed (a
sole proprietor or a partner), compensation is the net
earnings from your trade or business (provided your per-
sonal services are a material income-producing factor) re-
duced by the total of:
• The deduction for contributions made on your behalf
to retirement plans, and
• The deduction allowed for the deductible part of your
self-employment taxes.
Note the word I bolded.
Look at the first 2 posts in this thread:

https://mysolo401k.net/mycommunity/foru ... ributions/

It seems like the OP is asking almost the exact same question I'm asking here. But the response says "you would need to have at least have other sources of income (not necessarily self-employment income) to justify the Roth IRA contribution". And here he is explicitly asking about Roth IRA, not Traditional.

Statistics: Posted by GoldenBear17 — Fri Sep 06, 2024 10:38 pm — Replies 4 — Views 425



Viewing all articles
Browse latest Browse all 6110

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>