Author Topic: Is the max of $18,500 include 401k and Roth  (Read 619 times)

Sunshine007

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Is the max of $18,500 include 401k and Roth
« on: August 13, 2018, 02:21:12 PM »
Does the max contribution for 2018 include the Roth in the $18, 500?   

I'm asking if I can max 401K $18,500 then max Roth $5,500? $24,000 per year?




dandarc

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Re: Is the max of $18,500 include 401k and Roth
« Reply #1 on: August 13, 2018, 02:28:14 PM »
I'm asking if I can max 401K $18,500 then max Roth $5,500? $24,000 per year?
Yes - that's right - the IRA limit is in addition to the 401K limit.

Bracken_Joy

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Re: Is the max of $18,500 include 401k and Roth
« Reply #2 on: August 13, 2018, 02:33:30 PM »
For a regular 401k and a roth IRA, yes. But there are both traditional and roth 401k, and traditional and roth IRAs. So "roth" isn't specific here- you could technically be talking about a roth 401k or a roth IRA.

All 401k contributions (traditional + roth) max at $18,500. All IRA contributions (traditional + roth) max at $5,500. This is assuming you meet age and income requirements- closer to classic retirement age, those limits change. And there is an income cap on the roth IRA. Just be sure you look into that and make sure you qualify =)

mbl

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Re: Is the max of $18,500 include 401k and Roth
« Reply #3 on: August 14, 2018, 06:29:35 AM »
The 401(k) contribution limit for 2018 is $18,500.
Workers 50 and older get a catch-up contribution of $6,000, for a total of up to $24,500 annually.

Roth IRA contributions based on AGI,  https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2018

wenchsenior

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Re: Is the max of $18,500 include 401k and Roth
« Reply #4 on: August 14, 2018, 08:15:45 AM »
For a regular 401k and a roth IRA, yes. But there are both traditional and roth 401k, and traditional and roth IRAs. So "roth" isn't specific here- you could technically be talking about a roth 401k or a roth IRA.

All 401k contributions (traditional + roth) max at $18,500. All IRA contributions (traditional + roth) max at $5,500. This is assuming you meet age and income requirements- closer to classic retirement age, those limits change. And there is an income cap on the roth IRA. Just be sure you look into that and make sure you qualify =)

+1

Make sure you know whether you are contributing to a traditional 401k AND a Roth IRA ($24000 total if under 50), or to a traditional 401K and a Roth 401K ($18500 total if under 50).  I screwed this up a couple years ago, and maxed out the employee match about half way through the year, leaving a couple thousand $ on the table.  Ugh :self punch:

Lady SA

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Re: Is the max of $18,500 include 401k and Roth
« Reply #5 on: August 14, 2018, 09:55:32 AM »
"Roth" refers to the type of contributions (roth = post-tax), not the actual account.

Assuming you mean a (roth) IRA, which has an annual contribution limit of $5500, then yes, you get an annual $5500 contribution on top of your yearly $18500 401k contribution.