Roth Contribution limitations

Submitted by Daniel McConlogue on Mon, 2011-03-07 21:24

If a single person is enrolled in a 401-k plan at work, defers $10,000 in 2010 – can that person still make a Roth IRA contribtuion for 2010 up to $6,000 (she is over 50)?

Pub 590 goes on and on about SEP and Simple Contributions – but not a word on 401-k contributions…

Thanks,

Dan



Submitted by Alan Spross on Mon, 2011-03-07 21:48

Anyone with earned income can make a Roth IRA contribution unless their modified AGI is too high. For a single filer, the contribution begins to phase out when modified AGI exceeds 105,000. (ref p 56, 2009 Pub 590). The 401k deferral actually helps since it reduces the modified AGI by 10,000, but has no other affect on the Roth contribution.

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