The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Catica on May 09, 2018, 06:35:22 PM
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Can I contribute max to 401K ($18500) and tIRA ($5500)? Or is the max $18500 for all tax deferred accounts?
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Both, they are separate things. Max them both.
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Both, they are separate things. Max them both.
thanks
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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.
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After your 401k is maxed put the next $5500 into a Roth
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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/
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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.
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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.
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After your 401k is maxed put the next $5500 into a Roth
Unless you make too much money, then it is more complicated.
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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.
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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?
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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.
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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.
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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