Roth Contributions and Simple IRA’s

Submitted by Terry Nelson, CFP, MS on Sun, 2014-04-13 23:39

I know the annual limit for Roth IRAs is $6500. But I have a client who also has a
SIMPLE IRA plan at work that they put about $4000 in through
paycheck deductions. Does he have to subtract that $4000 from the $6500
limit? (giving me only $2500 to add to a Roth). I know any Regular
IRA contributions have to be subtracted — not sure about SIMPLE.

Thanks

Terry



Submitted by Alan - IRA critic on Mon, 2014-04-14 00:00

No subtraction required for the SIMPLE IRA contributions. The only limit to a Roth contribution is having earned income of at least 6,500 and modified AGI that is less than the Roth limit for client marital filing status as well as subtracting the traditional IRA contribution you mentioned.



Add new comment

Log in or register to post comments