I plan to do another backdoor Roth IRA conversion next year. I am in an LLC Partnership and was wondering if I can contribute to my traditional IRA with pretax (prepayroll taxes as well) money straight from my partnership. It would count against my net income for the month on the ledger. I could then convert it to a Roth IRA and pay the federal income taxes when I file my taxes. That would eliminate payroll taxes correct?
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You cannot deduct your personal TIRA from your business profits (or from your taxable income) if you earn over $119k (MFJ) or $72k (S or HOH) unless you have no retirement plan through your partnership.Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087
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Opposite. HSA contributions have no such limitation and are always deductible for purposes of federal income taxation. You won't be able to avoid FICA taxes on personal contributions, though.Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087
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