[Ralphie Dos Nachos]

Quick question on REG. Becker says for employee sponsored retirement plans, the limitation for deduction is based on an AGI phase out range. But that deduction would be included as a deduction to arrive at AGI. So are they saying the AGI phase out range to determine the IRA deduction is the total of everything else besides that IRA deduction? if that makes any sense.

[Recked]

I'm not 100% sure on this one, I've never had one that was actually in the phase out range, its usually all or nothing. Did some research. You don't use the actual AGI.
The IRA deduction actually uses a MAGI Modified AGI for phaseout (The MAGI does not factor in the IRA deduction in determining the phaseout). Check out Pub 590A
Worksheet 1-1, and Tables 1 and 2.
https://www.irs.gov/publications/p590a#en_US_2018_publink100025076
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Personal opinion. You are not likely to have to do phaseout limitation calculations on the exam. I think they want you to know what it is, and how it applies, but you'd most likely receive a question that states the phaseout, and gives you an AGI that is clearly above or below.
The EA exam is a different story. They are more likely to test if you know how to do the phaseout % calculation for someone with an AGI that falls in the phaseout range.
Again just my personal opinion.
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Pub 590A that I linked is probably overkill for the REG exam, don't spend a lot of time on it.
Just providing it so you can understand what I'm saying.

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