Multiple Contributions to PLANS
If i have a defined benefit pension plan as a state employee and also make the maximum ($24,500/over age 50) contribution to a voluntary 457 Deferred Compensation plan (contributing $10,000 to the traditional and $14,500 to the Roth version of the 457 D.F. plan), am I still able to contribute $6,500 to a Roth IRA ?
Permalink Submitted by Alan - IRA critic on Tue, 2018-03-27 19:18
The only number that matters in determining your Roth contribution is your modified AGI for Roth purposes. The pre tax 457 contributions will reduce your MAGI and make it more likely that you will not exceed the limit. The Roth MAGI limit depends on your tax filing status. If filing jointly your max Roth contribution begins to be phased out at 186k for 2017 or 189k for 2018. The DB plan is not a factor.
Permalink Submitted by James Demuth on Tue, 2018-03-27 22:10
Thank-you much… very helpful! I am single and 2017 pre tax contributions to the 457 bring me well under the $118k MAGI starting limit.