Determining Income that qualifies for ROTH IRA contribution

[Guest Larry S]

Situation. Single person makes $90,000 from employment, contributes 15% to 401K.

Also has private practice that earns $9,000 and contributes 13% to SEP.

so: Total income = 90K + 15 K = 105 K

retirement contrib =

90K x.15 = 13,500

9K x.13 = 1,900 totals 15.4K

so would AGI, or MAGI, = 105-15.4= 89,600

and thus would be full eligible for Roth contribution. help appreciated. thanks larry

[BPickerCPA]

Your first problem is that you overfunded the 401(k).