Author Topic: Max contributions  (Read 844 times)

Catica

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Max contributions
« on: May 09, 2018, 06:35:22 PM »
Can I contribute max to 401K ($18500) and tIRA ($5500)?  Or is the max $18500 for all tax deferred accounts?

Silverado

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Re: Max contributions
« Reply #1 on: May 09, 2018, 06:46:26 PM »
Both, they are separate things. Max them both.

Catica

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Re: Max contributions
« Reply #2 on: May 09, 2018, 06:47:55 PM »
Both, they are separate things. Max them both.
thanks

DreamFIRE

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Re: Max contributions
« Reply #3 on: May 09, 2018, 08:19:18 PM »
As a single person, if your MAGI is over $63K, you will not be able to deduct the entire tIRA.  73K or more, no tIRA deduction.   Those thresholds are $101K and $121K for married filing jointly.

There are also catch-up contributions if you're 50 or older by the end of the year, which is $6K for 401K and $1K for IRA.

VaCPA

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Re: Max contributions
« Reply #4 on: May 10, 2018, 07:07:27 AM »
After your 401k is maxed put the next $5500 into a Roth

merula

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Re: Max contributions
« Reply #5 on: May 10, 2018, 07:16:18 AM »
After your 401k is maxed put the next $5500 into a Roth

Whether a Roth is preferable over a tIRA depends on a lot of individual circumstances, of which we know exactly none about OP.

ETA: https://www.madfientist.com/traditional-ira-vs-roth-ira/
« Last Edit: May 10, 2018, 07:20:04 AM by merula »

Catica

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Re: Max contributions
« Reply #6 on: May 10, 2018, 12:18:32 PM »
I'm not asking where to put my money.  I just wanted to know if I can contribute $18500 to my 401K and $5500 to my tIRA.  I'm not interested in Roth.

Gronnie

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Re: Max contributions
« Reply #7 on: May 10, 2018, 02:18:14 PM »
401k and IRA contribution limits are separate. You can contribute the max to both, as long as you are within income guidelines for being able to contribute to the traditional IRA.

Bill_

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Re: Max contributions
« Reply #8 on: May 10, 2018, 04:37:03 PM »
After your 401k is maxed put the next $5500 into a Roth

Unless you make too much money, then it is more complicated.

MDM

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Re: Max contributions
« Reply #9 on: May 10, 2018, 05:43:41 PM »
401k and IRA contribution limits are separate. You can contribute the max to both, as long as you are within income guidelines for being able to contribute to the traditional IRA.
With a traditional IRA, there is no income limit for contributions.

There is, however, an income limit on the deductibility of a traditional IRA contribution if one is "covered by" a retirement plan at work.  Contributing any amount to a 401k plan makes one "covered by" a retirement plan at work for that year.

Catica

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Re: Max contributions
« Reply #10 on: May 10, 2018, 08:34:15 PM »
401k and IRA contribution limits are separate. You can contribute the max to both, as long as you are within income guidelines for being able to contribute to the traditional IRA.
With a traditional IRA, there is no income limit for contributions.

There is, however, an income limit on the deductibility of a traditional IRA contribution if one is "covered by" a retirement plan at work.  Contributing any amount to a 401k plan makes one "covered by" a retirement plan at work for that year.
Can you explain that?  What is that limit?

MDM

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Re: Max contributions
« Reply #11 on: May 10, 2018, 09:48:33 PM »
401k and IRA contribution limits are separate. You can contribute the max to both, as long as you are within income guidelines for being able to contribute to the traditional IRA.
With a traditional IRA, there is no income limit for contributions.

There is, however, an income limit on the deductibility of a traditional IRA contribution if one is "covered by" a retirement plan at work.  Contributing any amount to a 401k plan makes one "covered by" a retirement plan at work for that year.
Can you explain that?  What is that limit?
Try googling
  income limit for ira deduction
and see if that answers your questions.

DreamFIRE

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Re: Max contributions
« Reply #12 on: May 10, 2018, 10:07:46 PM »
401k and IRA contribution limits are separate. You can contribute the max to both, as long as you are within income guidelines for being able to contribute to the traditional IRA.
With a traditional IRA, there is no income limit for contributions.

There is, however, an income limit on the deductibility of a traditional IRA contribution if one is "covered by" a retirement plan at work.  Contributing any amount to a 401k plan makes one "covered by" a retirement plan at work for that year.
Can you explain that?  What is that limit?

?????  Try scrolling up a few posts because I addressed this exact thing.  Not sure how you missed it.

Catica

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Re: Max contributions
« Reply #13 on: May 11, 2018, 03:55:30 AM »
401k and IRA contribution limits are separate. You can contribute the max to both, as long as you are within income guidelines for being able to contribute to the traditional IRA.
With a traditional IRA, there is no income limit for contributions.

There is, however, an income limit on the deductibility of a traditional IRA contribution if one is "covered by" a retirement plan at work.  Contributing any amount to a 401k plan makes one "covered by" a retirement plan at work for that year.
Can you explain that?  What is that limit?

?????  Try scrolling up a few posts because I addressed this exact thing.  Not sure how you missed it.
So sorry, I missed it.  I won't be over 63K this year.  Thank you