Author Topic: Do IRA contributions count against 401k maximum contirbution limit?  (Read 1528 times)

Aggie1999

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Question: Does the $5,500 one can contribute to a tIRA/rIRA count towards the $54,000 maximum limit one can contribute to a 401k plan? Basically I am confused if the $54,000 only applies to the 401k or if it's a limit across all retirement type accounts for the year. Thanks.

dandarc

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Re: Do IRA contributions count against 401k maximum contirbution limit?
« Reply #1 on: June 14, 2017, 10:27:56 AM »
No - IRA limit is completely separate from any 401K limits.

BrandNewPapa

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Re: Do IRA contributions count against 401k maximum contirbution limit?
« Reply #2 on: June 14, 2017, 10:46:49 AM »
IRA and 401k contributions are separate.

Where did you get $54,000 for 401k?

The IRS limits for 2017 are:
Under 49 years old: $18,000
Over 50 years old: $24,000

sirdoug007

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Re: Do IRA contributions count against 401k maximum contirbution limit?
« Reply #3 on: June 14, 2017, 10:53:34 AM »
IRA and 401k contributions are separate.

Where did you get $54,000 for 401k?

The IRS limits for 2017 are:
Under 49 years old: $18,000
Over 50 years old: $24,000

$54k is the employee + employer annual limit for 401(k) contributions.

Quote
Overall limit on contributions
Total annual contributions (annual additions) to all of your accounts in plans maintained by one employer (and any related employer) are limited. The limit applies to the total of:
elective deferrals

employer matching contributions

employer nonelective contributions

allocations of forfeitures
The annual additions paid to a participantís account cannot exceed the lesser of:
100% of the participant's compensation, or

$54,000 ($60,000 including catch-up contributions) for 2017;  $53,000 ($59,000 including catch-up contributions) for 2016.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits

BrandNewPapa

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Re: Do IRA contributions count against 401k maximum contirbution limit?
« Reply #4 on: June 15, 2017, 10:29:12 AM »
Ah, yeah. Didn't think about thinking the employer limits.