Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 541
I have 2 questions I was hoping someone can help with …
(1) I wanted to confirm that for 2018, I can contribute to a SEP IRA, a traditional IRA and DW can contribute to a traditional IRA all in the same year. I believe the SEP is limited to 20% of Net profit, and the 2 traditional IRAs is limited to $6,500 per IRA (both over 50 years of age). All correct?
(2) I wanted to confirm that the new 2018 tax reform changes for pass through businesses (199A) allows me to deduct 20% of net income. The document I read said something about long term capital gains - but did not understand what capital gains has to do with this?
Also, I believe the 199A deduction does not reduce my MAGI used for ACA calculations since I think it is subtracted after adjusted gross income. Correct?
(1) I wanted to confirm that for 2018, I can contribute to a SEP IRA, a traditional IRA and DW can contribute to a traditional IRA all in the same year. I believe the SEP is limited to 20% of Net profit, and the 2 traditional IRAs is limited to $6,500 per IRA (both over 50 years of age). All correct?
(2) I wanted to confirm that the new 2018 tax reform changes for pass through businesses (199A) allows me to deduct 20% of net income. The document I read said something about long term capital gains - but did not understand what capital gains has to do with this?
Also, I believe the 199A deduction does not reduce my MAGI used for ACA calculations since I think it is subtracted after adjusted gross income. Correct?