Reply To: Keogh and backdoor Roth contribution

Home Fairmark Forum Retirement Savings and Benefits Keogh and backdoor Roth contribution Reply To: Keogh and backdoor Roth contribution

#23674
ruth
Participant

1. Only IRA balances affect the pro rata calculation. Instructions to line 6, Form 8606: Enter the total value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 2020, plus any outstanding rollovers.

2. Keogh plan contributions reduce QBI. From the Form 8995-A instructions: To figure the total amount of QBI, you must consider all items that are attributable to the trade or business. This includes, but isn’t limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans.