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Working / Accumulation Phase, Tax Planning

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

Updated 12/1/2023

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, which could impact how small business owners save for retirement.

To help make this analysis 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 is based on the 2019 Nerd’s Eye View article 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 considerations
Related Guides
Am I Eligible For A Qualified Business Income (QBI) Deduction?
Category: Working / Accumulation Phase, Tax Planning
Should I Set Up A Traditional 401(k) For My Business?
Category: Working / Accumulation Phase, Assets and Investment Planning
What Issues Should I Consider When Starting A Business?
Category: Working / Accumulation Phase, Life Events
What Issues Should I Consider If I Experience A Sudden Wealth Event?
Category: General, Working / Accumulation Phase, Estate Planning, Life Events
Should I Establish A SEP IRA Or A SIMPLE IRA Plan For My Small Business?
Category: Working / Accumulation Phase
Common Retirement Plans For Small Business Owners
Category: Working / Accumulation Phase
Common Pension Plans For Small Business Owners
Category: Working / Accumulation Phase
What Issues Should I Consider As A Business Owner Or 1099 Worker?
Category: Working / Accumulation Phase, Tax Planning, Life Events

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