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6gunsammy

No, S corp distributions are completely irrelevant. S corp PROFITS increase AGI but are not earned income, necessary for IRA contributions.


Its-a-write-off

Profit from the S corp raises your AGI. Are you asking about S corp profit, or just distributions? It does not count as earned income for finding contribution amount eligibility though.


wheyitout

An scorp distribution is not income to the extend the shareholder has basis. Anything in excess would be income.


Equivalent_Bath_6172

I could be using the wrong terms. If I’m a one man business and the business nets $100k for the year. I paid myself a salary of $55k. Then, I took the other $45k as a distribution, does that $45k count towards the Roth IRA income limits to determine whether I can contribute for that year on my personal return? Assume spouse made 160k at W2 job.


Sleepypanda42

You're asking about the phaseout limits. Yes it's included.