Hello,
Quick background:
-Married
-Employed and annual income is about $90k
-Spouse income is $40k
-Sold a side business in 2017 for $60k
-Maxing out 401Ks
I was originally planning to contribute $5,500 to each of our IRAs, but found that we may not qualify for standard deductions based on IRS
https://www.irs.gov/retirement-plans/2017-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-workNext thought I had:
File separately and invest $5,500 into ROTH IRA for me and $5,500 for spouse in traditional IRA as I would not qualify for deduction.
My last idea:
I am still transacting under my LLC until the end of the year. I read that I can have both a standard 401k and a Solo 401k as I am also self-employed. If possible, I'd like to also contribute $10k to the Solo 401k.
My question then is this:
Assuming all of this is possible, would contributing to the Solo 401k reduce my taxable income? What would be the best way for me to reduce my taxable income for 2017?
I have only spent about an hour researching this, so forgive any incorrect assumptions I may have made.
Thanks!!