Roth and 401K Roth
Looking for an article discussing contributing to a Roth IRA and a 401K Roth at the same time.
Thanks for the info!
Got it. Be careful of income limits! And YES contribute to Roth and contribute to 401K Roth!! I wish there was an article on this.
Permalink Submitted by Alan - IRA critic on Wed, 2021-08-04 21:14
I am not aware of an article on this subject. This clearly can be done, as the contribution rules are independent of each other. However, there are indirect implications, since making Roth 401k contributions compared to pre tax will result in a higher MAGI, so in some cases that MAGI would be too high for a direct Roth IRA contribution. For longer term purposes, choosing post tax Roth 401k contributions results in paying taxes for the amount contributed at your current marginal rate. If that rate is higher than the rate you expect to apply after retirement if you contributed pre tax instead, the choice would not be beneficial in most cases.