The QBI deduction rules are complicated. One of the newest planning issues to consider deals with a possible QBI deduction-reduction effect on retirement plan contributions, which could impact how small business owners save for retirement.
This flowchart will help you navigate these complicated rules. It considers the following:
- Key QBI deduction eligibility guidelines
- QBI deduction income thresholds
- Positive impact of lower AGI
- Roth 401(k) vs. pre-tax 401(k) decision points
- Mega Backdoor Roth IRA considerations
