IRA Income Limit Debate
I’ve been having a IRS Income Limit debate with my spouse. I believe that the contribution income limit applies to all types of IRAs – Roth, 401K, etc., regardless if you are over age 50. She says no it doesn’t.
2024- MAGI limit is $240,000. Meaning we can’t make any IRA contributions if our MAGI is over the limit.
Who is right?
Permalink Submitted by Alan - IRA critic on Mon, 2024-01-29 19:07
Neither is correct. Income limits do not apply to 401k contributions, just IRA contributions.If your joint MAGI for Roth IRA purposes is 240k, neither of you qualify for a regular Roth IRA contribution or if either spouse participates in a qualified plan, for a deductible TIRA contribution. Your only options in that case would be non deductible TIRA contributions, as they have no upper income limit.