Is there any 401k+ Nondeductible IRA limitation
Can our client put in the maximum $15500 in his 401k and still put $4000 for himself and $4000 for his non-working spouse in each person’s non-deductible IRA?
He was advised that there’s no problem because the contribution is not being deducted. His AGI is in excess of $300,000.
Thanks
Permalink Submitted by Alan Spross on Tue, 2008-05-13 22:19
That’s right. There is no maximum income limit on non deductible TIRA contributions, but there still must be enough earned income to cover the contributions. The 2008 limits are 5,000 with an extra 1,000 catch up if age 50+. Form 8606 should be filed for each spouse to report the non deductible contributions. There is the potential to convert to a Roth in 2010 when the income limits disappear.