MAGI May (Be Headed North of $100k)
June 26, 2008 9:09 AM   Subscribe

Will opening a Solo 401(k) before year's end reduce my modified adjusted gross income (MAGI)? I'm a 28-year-old freelance worker with a sole proprietorship, and I'd like to be able to fully fund my Roth IRA for 2008

It looks like I will soon reach $100k in earnings for the year, and I'm starting to think about ways to reduce my MAGI in order to be able to contribute the maximum amount allowed ($5000) to my Roth IRA.

From what I can tell, contributions made to an employer-sponsored 401(k) will reduce my MAGI, but does this reduction occur with self-employed (aka Solo) 401(k)s? If not, does anyone have any additional advice for reducing my MAGI?
posted by anonymous to Work & Money (1 answer total)
 
That sounds like a good strategy to me. Double check with an accountant, but yes, a Solo 401(k) should reduce your MAGI.
posted by small_ruminant at 10:05 AM on June 26, 2008


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