Tax law change basic question

[Doc29]

Hey all,

Hoping you all smart people can answer 3 new tax law questions that apply to my situation.

1. Have the back door roth rules have changed with the new legislation?

2. I physician with both a W2 and Independent contractor ie 1099 income. In past years I have contributed to both my employer sponsored plans and Solo 401k based on my IC income. Has this changed with the new law

3. About Independent 1099 income. Are the basic Schedule C deductions unchanged? For instance allowance for business deduction in past years for folks who do not plan on filing as an S corp. Referring to simple things like still deducting your business expenses to calculate your net profit. Not sure if it be worth my time to file as an S corp.

Much appreciate someone smarter than me answering these questions.

[Peds]

No.

No.

Not sure.

[Antares]

No.

No.

No.

[Doc29]

Thank you all for the replies. Just wanted to confirm that I understood the replies correctly.

So does this mean that there are no changes made to these three points with the new legislation. Everything stays the same same steps for Roth, Still 20 percent of IC income for Solo 401 k,

[Antares]

I’m not an accountant, but I’m not aware of any changes in the bill affecting those three issues.

[DMFA]

It's *not* 20% of income. It's 20% of *net profits* defined as income, minus expenses, minus half of self-employment tax.

...and no to all.

[dgeottman]

I was curious about this being the end of the backdoor roth IRA as well. This is a quote from Investopedia.com referring to the changes under the new tax law.

"Retirement Plans and HSAs

Health Savings Accounts (HSAs) are not be affected by the law, as they would have been under the bill passed by the House.

Reports circulated in October that traditional 401(k) contribution limits could fall to $2,400 from the current $18,000 ($24,000 for those aged 50 or older). Individual retirement account (IRA) contribution limits, currently $5,500 ($6,500 for 50 or older), may also have been considered for cuts. The law leaves these limits unchanged, but repeal the ability to recharacterize one kind of contribution as the other, that is, to retroactively designate a Roth contribution as a traditional one, or vice-versa."

Found here https://www.investopedia.com/news/trumps-tax-reform-what-can-be-done/

 

Also, I will be starting as an independent contractor for moonlighting at a local hospital as hospitalist in the new year. Will this 20% deduction apply to the work I do there? I don't have any formal LLC or other business set up at present.