Author Topic: IRA limits when working partial year with 401k?  (Read 2580 times)

phwadsworth

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IRA limits when working partial year with 401k?
« on: September 16, 2015, 11:45:19 AM »
quick question hopefully....
From January-August of 2015 I worked for a company with a 401k that I contributed to.
From September-(the future) I am working for a company with no retirement plan, I need to set up my own thing.

Does this mean I can put $5,500 in an IRA in 2015?  or are there other limits because I did work for a company with a 401k during 2015?

thanks.

seattlecyclone

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Re: IRA limits when working partial year with 401k?
« Reply #1 on: September 16, 2015, 12:04:54 PM »
As long as you have at least one W-2 with the "retirement plan" box checked, the lower income limits for deductible contributions will apply to you. It doesn't matter that you only had the job part of the year.

The income limits for Roth IRA contributions are quite a bit higher, and you may still make non-deductible traditional IRA contributions regardless of income.

MDM

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Re: IRA limits when working partial year with 401k?
« Reply #2 on: September 16, 2015, 12:17:25 PM »
Does this mean I can put $5,500 in an IRA in 2015?  or are there other limits because I did work for a company with a 401k during 2015?
Sure, you can always do that.

Now, whether you can deduct that or not, or whether you can put it directly in a Roth or need to do a backdoor Roth, will depend on your income.  You might start with http://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits and see where that takes you.  SC's comment about any 401k "contaminating" the whole year is correct - you can find the IRS comment on that if you follow the links in what is linked here.

phwadsworth

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Re: IRA limits when working partial year with 401k?
« Reply #3 on: September 16, 2015, 12:34:19 PM »
As long as you have at least one W-2 with the "retirement plan" box checked, the lower income limits for deductible contributions will apply to you. It doesn't matter that you only had the job part of the year.
argh!  If only I could have seen the future and contributed more before that last job ended.

thanks for the help.

forummm

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Re: IRA limits when working partial year with 401k?
« Reply #4 on: September 16, 2015, 03:35:15 PM »
argh!  If only I could have seen the future
I feel like this every day.