If you are a high-income professional who is excluded from the new pass-through deduction because you are in a specified service trade or business (SSTB), you may be able to use retirement plan contributions as a work-around so that you can benefit from that new 20% deduction.
An SSTB generally includes the following trades or businesses:
- Health (services by physicians, nurses, dentists, veterinarians, and other similar health care providers, although this does not apply to spas and health clubs)
- Actuarial science
- Performing arts (but this does not apply to the services of others in the industry, such as promoters and broadcasters);
- Financial services