ROTH + 403(B)

[Zman]

Quick Question:

Can I contribute $5500 to my Roth IRA    AND    $18000 to my 403b this year? (2015) for a total of $23,500/year

OR

Am I only allowed $5500 in Roth and $12,500 in 403b?


THANKS IN ADVANCE!

[MDM]

Can I contribute $5500 to my Roth IRA    AND    $18000 to my 403b this year? (2015) for a total of $23,500/year

Yes.

[Zman]

Thanks, even though:

"The good news is that you have the best of both worlds, says Rad. You can hedge your bets by contributing both to your traditional 401(k) and the Roth 401(k), though you are capped at $18,000 total. Do this, and you can lower your current taxable income and build a tax diversified retirement portfolio."

http://time.com/money/3818438/roth-ira-roth-401k-which-wins/#

[clarkm04]

That article is referencing the ROTH 401k.

If you are doing an IRA, whether ROTH or traditional, you can pull $5,500 along with 18 K to your 401k/b.

If your work has a 401k and a ROTH 401k you are limited to 18 K total.

[seattlecyclone]

401(k) contribution limits are completely separate from IRA contribution limits. You may contribute a total of $18k to a 401(k) or 403(b) in whatever combination of Roth and traditional contributions you wish. Separately from this, you may contribute a total of $5.5k to IRAs in whatever combination of Roth and traditional combinations that you wish.