Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
mjpersely,

You wrote, "so your AGI has to be low enough to qualify for a deductible IRA contribution", what about if it is low enough to qualify for a ROTH IRA?

The net profit is unlikely going to be anything over the maximum employee contribution allowed for 2019.


Then do that instead. You just need to make sure you have enough in AGI to cover the Roth IRA contribution.

If you have very little income and then you contribute it all pre-tax to a solo-401(k), you wouldn't be able to make a Roth IRA contribution. But if you contribute to a Roth solo-401(k) I believe you can effectively double-dip because the Roth solo-401(k) contribution doesn't reduce your AGI ... which should let you still make a Roth IRA contribution.

- Joel
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.