Will the Deductibility of My Retirement Plan Contributions Be Impacted by the QBI Rules?
Do you own a Pass-Through Entity (anything but a C-Corp) and have Qualified Business Income?
Are you taking advantage of the tax opportunities available to ensure that you are maximizing your return and outlasting your competitors?
It is imperative in a competitive business environment that YOU are taking advantage of all incentives provided by the government for taking on risk as a business owner.
If you own a pass-through business entity, click the link to ensure you are taking advantage of tax deductions through both QBI Deductions and Tax-Deferred Retirement Vehicles:
Will the Deductibility of My Retirement Plan Contributions Be Impacted by the QBI Rules?
1) Do you have multiple Businesses?
Yes? Then can you claim a QBI deduction? If yes, then the deductibility of your retirement plan contribution may be impacted by the QBI deduction-reduction effect. If no, then the QBI deduction-reduction effect will not impact you.
No? Then go to the next question.
2) Is your QBI over $163,000 if Single or $326,600 if Married Filing Jointly?
Yes? Then can you claim a QBI deduction? If yes, then the deductibility of your retirement plan contribution may be impacted by the QBI deduction-reduction effect. Go to the next question. If no, then the QBI deduction-reduction effect will not impact you.
No? Then the deductibility of your retirement plan contributions may be impacted by the QBI deduction-reduction effect.
Check Out Our Flowchart
To see our easy-to-read flowchart that will help you determine the tax consequences of making retirement plan contributions, click here. Always consult your tax advisor for any personal tax-related questions.
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Are you taking advantage of all the tax planning opportunities available to you? If you would like to schedule a call to talk about best tax strategies or other investment advice, please give us a call at 303-440-2906 or click here to schedule a time to speak with us.
Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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