Submitted By: someone
Answered: December 3, 2017 9:11 pm

I’m self-employed. Can I have an IRA?

Contributions to an IRA are based on earned income, which includes net earnings from self-employment. If you have a qualified retirement plan, such as a SEP, for your business, you can contribute to a deductible IRA only if your modified adjusted gross income (MAGI) level is below a set amount. If you don’t have a plan, there’s no MAGI limit for making a deductible IRA contribution. Or, you may choose to make a Roth IRA contribution (nondeductible), but there are MAGI limits whether or not you have a qualified plan.

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Tax Glossary

Tax home

The area of your principal place of business or employment. You must be away from your tax home on a business trip to deduct travel expenses.

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