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

Categories: 401(k), Adding money to a qualified plan, Business Owners, Taxation

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

 

Updated 2/1/2019