Traditional IRA + 401k
With all the Secure changes wanted to double check this.
A 70 year old client has recently joined a new company with a 401k and a 5% match.
The 2024 limits for your own IRA is $8,000 and 401k $30,500.
Can he do $8,000 to his own IRA as long as his total does not exceed $30,500?
Permalink Submitted by Alan S on Thu, 2024-03-07 16:34
The 401k limits and IRA contribution limits are separate. However, since client is now an active participant in the 401k, there are income limits over which the IRA contribution could not be deducted, and even if income is low enough to deduct the IRA contribution, the deduction would reduce future QCDs client might do, up to the amount of IRA contributions starting at age 70. Therefore, perhaps client should consider a Roth contribution if MAGI is not too high for a Roth contribution.