The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Captain Cactus on April 13, 2016, 07:01:23 PM

Title: Stacking retirement accounts?
Post by: Captain Cactus on April 13, 2016, 07:01:23 PM

Simpel question:  how many retirement accounts can one max out per year?

For example, if I max out my 401K at $18,000 and my IRA at $5500, can I also contribute additional funds to a Roth 401K?  If this is possible, what value does that bring vs. a taxable Vanguard mutual fund account?

Thanks!

Title: Re: Stacking retirement accounts?
Post by: tarheeldan on April 13, 2016, 07:30:27 PM

You get 5,500/yr to IRA total, you can allocate that between Roth and Traditional as you wish. Deductibility for the Traditional depends on AGI.

You can do an HSA, and employer contributions to your 401k also work to increase tax sheltered amounts.

Sent from my Nexus 6 using Tapatalk

Title: Re: Stacking retirement accounts?
Post by: VaCPA on April 13, 2016, 07:31:31 PM

The 401k limit(18k) applies to all 401k accounts. For instance we have a traditional 401k and Roth 401k at my work. The max I can contribute is 18k total per year between the two, not 18k each.

Title: Re: Stacking retirement accounts?
Post by: forummm on April 13, 2016, 08:17:49 PM

You can max both a 401k and 457b if both are available to you. Same with 403b and 457b. Most employers don't offer both.

Title: Re: Stacking retirement accounts?
Post by: johnny847 on April 13, 2016, 08:21:39 PM

401k, 403b, and SIMPLE IRA limits are all combined (as an employee, not an employer).

Contribution limits to 457b's and personal IRAs (traditional or Roth) are separate. And as mentioned previously, it's $5500 total to any personal IRA, Roth or traditional, split up however you want.

If your employer offers a 401a that has a separate limit.