TOTAL IRA contribution Rules – Clarification

Submitted by David Belk on Wed, 2023-11-08 16:39

Joe and Sally (55) have $200K Income The both max their 401K with the catchup @ $30,500 *2 = $61,000 total.

1) Can they both fully contribute to a TRADITIONAL IRA at $7500, combined total of $15,000.00?

2) If they cannot do question 1 above, Can they both fully contribute to a ROTH IRA at $7500, combined total of $15,000.00?



Submitted by Alan - IRA critic on Wed, 2023-11-08 17:44

  • They can contribute to a TIRA, but their income is too high for a deduction.
  • They will be eligible for Roth IRA contributions if their modified AGI is under 218k, but they might be getting close to the limit if there is any additional income from investments, etc.
  • And if their modified AGI turns out to be too high for a Roth contribution, and if they have no TIRA balances, they could make a non deductible TIRA contribution and then convert it tax free. 

Submitted by PaulC on Wed, 2023-11-08 18:45

The maximum combined annual IRA contribution limit is $7,500 for 2023. It’s increasing to $8,000 ($7,000 plus $1,000 catch up) for 2024.The maximum employee 401(k) contribution is $30,000 ($22,500 plus $7500 catch up) for 2023. It’s increasing to $30,500 ($23,000 + $1,000) for 2024.The question seemed to be referencing contribution limits from different years.

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