Permalink Submitted by Alan Spross on Mon, 2007-12-17 18:37
Yes, you can do this subject to:
1) 2008 Plan limits of 15,500 to the designated Roth account. There is no income limitation.
2) Roth IRA limits of 5,000. subject to the modified gross income limit phaseouts starting at 101,000 if you are single or 159,000 if filing jointly. Using the Roth 401k option, your income is increased up to 15,500 since these contributions are not pre tax. That could affect your Roth IRA income elgibility.
If you reach age 50 or later in 2008, the catchup contributions can be added to the above numbers.
You also have the option of splitting your 401k contributions between the Roth and the pre tax option, usually in any proportion you wish, as long as the 15,500 limit is not breached. That may help you meet the Roth IRA income requirement, as well as providing a current tax break for the pre tax portion of your 401k contribution.
Permalink Submitted by Alan Spross on Mon, 2007-12-17 18:37
Yes, you can do this subject to:
1) 2008 Plan limits of 15,500 to the designated Roth account. There is no income limitation.
2) Roth IRA limits of 5,000. subject to the modified gross income limit phaseouts starting at 101,000 if you are single or 159,000 if filing jointly. Using the Roth 401k option, your income is increased up to 15,500 since these contributions are not pre tax. That could affect your Roth IRA income elgibility.
If you reach age 50 or later in 2008, the catchup contributions can be added to the above numbers.
You also have the option of splitting your 401k contributions between the Roth and the pre tax option, usually in any proportion you wish, as long as the 15,500 limit is not breached. That may help you meet the Roth IRA income requirement, as well as providing a current tax break for the pre tax portion of your 401k contribution.