Is there any 401K + Roth IRA limiation
Hi all, can I put in the maximum 15500 in 401K and also put 5000 for me and 5000 for my wife (with me as beneficiary) in ROTH IRA?
Basically my question is if I put money in 401K do I loose the 5K limit on Roth IRA?
Your response is appreciated.
Thanks.
Permalink Submitted by Alan Spross on Mon, 2008-04-28 02:21
Your 401k contributions will have no negative affect on your ability to make Roth contributions. A Roth contribution will be disqualified if your joint modified AGI is too high, therefore the 401k contributions may actually HELP in keeping your modified AGI from exceeding the limits since it will reduce your modified AGI by 15,500 or whatever amount you contribute.
The 2008 modified AGI phaseout range for Roth contributions is 159,000 to 169,000 for joint filers.
In addition, if your 401k plan offers a Roth option and you elect it for all or a portion of your contributions, you can still contribute to a Roth IRA, however, the Roth 401k contributions do not reduce your modified AGI.
Permalink Submitted by Vista California on Mon, 2008-04-28 03:41
alan-oniras, thank you very very much for your clear reply. Have a great week ahead!!!