Roth IRA Contribution While Making Roth 401(k) Contributions
Client has a 401(k) through employer and is utilizing the Roth option inside of the 401(k). Can he also do a Roth IRA outside of the 401(k)? And if so, are the contribution limits any different than normal?
Thanks,
Dean
Permalink Submitted by Alan - IRA critic on Mon, 2014-11-03 22:14
He can also contribute to a Roth IRA subject to the usual modified AGI limits. Note that client will have a higher MAGI when contributing to the Roth 401k option than the pre tax 401k option. Otherwise, Roth 401k contributions have no effect on Roth IRA contributions/