401k questions

[crazy30]

Since the year is almost over, what do i do if my husband's contribution will only be 11,000? We want to max out to 18,000 but he next last salary date won't make it. Can we open a traditional ira via vanguard or fidelity and contribute 7,000 instead?

[therethere]

Unfortunately, unless you can hit 18000 with whatever paycheck cycles are left you are out of luck. You can't make up the difference in other accounts or add a bulk payment. It must be deducted from employer paychecks. I ran into this last year. I couldn't reach 18000 because my company limits your contribution percent at 30% which wasn't high enough to reach 18000.

[MrMoogle]

If your MAGI is less than 98k, you and your husband can each contribute $5500 into a tIRA and have that deducted, similar to a 401k.

https://www.irs.gov/Retirement-Plans/2015-IRA-Deduction-Limits-Effect-of-Modified-AGI-on-Deduction-if-You-Are-Covered-by-a-Retirement-Plan-at-Work

But no, you cannot get to 18k in a 401k.

[johnny847]

I'm surprised this hasn't been addressed already but no you cannot contribute 7000 to an IRA this year. Your lack of ability to max out your 401k is irrelevant.

However you and your husband can both open IRA and each contribute up to 5500. However, be aware if you make too much it will not be tax deductible.

[Dezrah]

I have a young coworker who I've been pseudo-mentoring financially lately.  He comes over about once a week and we chat about finances and I'll usually teach him something new.

Today I realized he had mentally confused Roth IRAs and Roth 401ks and thought he had maxed out his Roth 401k by reaching the $5500 limit.  This is especially sad (well, not really sad but I can't think of the right word right now) because we have a very generous matching plan this year that doesn't have a limit.  It doesn't help that his dad (who I'm sure is a nice guy) seems to keep offering half-right advice.

My point is it's really easy to get confused, so keep asking questions until you're sure you understand.

[S]

This is not a common scenario, but adding in case it benefits someone. If you have a bonus that applies to this tax year you can choose to have that go to the 401k. Easy way to quickly contribute a good portion if not max it out.

[crazy30]

I have a young coworker who I've been pseudo-mentoring financially lately.  He comes over about once a week and we chat about finances and I'll usually teach him something new.

Today I realized he had mentally confused Roth IRAs and Roth 401ks and thought he had maxed out his Roth 401k by reaching the $5500 limit.  This is especially sad (well, not really sad but I can't think of the right word right now) because we have a very generous matching plan this year that doesn't have a limit.  It doesn't help that his dad (who I'm sure is a nice guy) seems to keep offering half-right advice.

My point is it's really easy to get confused, so keep asking questions until you're sure you understand.

.  Ok i am guilty with this one... How much theb can I contribute on roth (fidelity) and roth 401k?

[MDM]

Ok i am guilty with this one... How much theb can I contribute on roth (fidelity) and roth 401k?

Does http://www.cffpinfo.com/download/annual_limits/2015_Annual_Limits.pdf answer your question?

[crazy30]

Ok i am guilty with this one... How much theb can I contribute on roth (fidelity) and roth 401k?

Does http://www.cffpinfo.com/download/annual_limits/2015_Annual_Limits.pdf answer your question?

golden !!! Thanks!!!