The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/i-read-somewhere-that-self-employed-individuals-30887097.aspx

Subject:  Re: More Obamacare Confusion Date:  9/25/2013  11:15 AM
Author:  TMFPMarti Number:  119200 of 121096

I read somewhere that self-employed individuals should add on your IRA contributions to calculate your MAGI. But then I read somewhere else that contributions to 401(k)s did not have to be added back on to line 37 of Form 1040 to calculate MAGI for Obamacare purposes.

For future reference, you can usually find somewhere or someone who tells you just about anything about tax law. Always look for a cite.

Peter provided a cite in response to the original question, so I suggest you use it. It's very clear about what you add to AGI to get MAGI for this purpose. There's no mention of retirement accounts of any stripe.

I just thought about what may have been wrong "somewhere." In the interest of simplification Congress has provided multiple calculations of MAGI depending on the particular use. For example, Roth IRA MAGI is different from Obamacare MAGI. Never try to apply one to a different provision.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us