MAGI & SEP IRA
Is a SEP IRA contribution added back to AGI to calculate MAGI?
Person A wants to reduce MAGI to be eligible for a Roth IRA. They are self-employed and are able to make a SEP IRA contribution to put them under the phaseout for Roth. Is a SEP IRA contribution an add back item for the MAGI calculation?
Thank you.
Permalink Submitted by David Mertz on Mon, 2021-03-22 14:51
A SEP contribution is not added back to AGI when calculating the MAGI for the purpose of a Roth IRA contribution. A SEP contribution will reduce MAGI.