Broker Check

Will The Deductibility Of My Retirement Plan Contributions Be Impacted By The QBI Rules?

| April 04, 2019
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The QBI deduction rules are complicated. One of the newest planning issues to consider deals with a possible QBI deduction-reduction effect on retirement plan contributions that could impact how small business owners save for retirement.

To help make the conversation with clients easier, we have created the “Will The Deductibility Of My Retirement Plan Contributions Be Impacted By The QBI Rules?” flowchart. This particular flowchart was developed in collaboration with Jeff Levine and based on the recent Nerd’s Eye View article he wrote covering this topic. This flowchart considers the following:

  • Key QBI deduction eligibility guidelines
  • QBI deduction income thresholds
  • Positive impact of lower AGI
  • Roth 401(k) vs pre-tax 401(k) decision points
  • Mega Backdoor Roth IRA consideration

This article represents opinions of the authors and not those of their firm and are subject to change from time to time, and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment or legal strategy. The information contained here has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy.

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Richard Murray and Mark Smed offer securities through Woodbury Financial Services, Inc. (WFS), member FINRA/SIPC. Investment advisory services offered through ISC Financial Advisors.   WFS is separately owned and other entities and/or marketing names, products or services referenced here are independent of WFS.  WFS does not offer tax or legal advice.

Richard Murray offers services in AZ, CA, CO, FL, IA, KS, MN, OK, SD, VA, and WI, Mark Smed in CA, CO, IA, MN, NM, OK, SD, WA, and WI. No offers may be made or accepted from any resident outside the specific state(s) referenced.

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