Roth 401k & Roth IRA Contributions

I will be employed for 1 month of 2021, retiring January 31. I am participating in my employer 401k Roth option. For that 1 month my Roth 401k contributions will be almost my entire pay net of tax withholdings and deductions. Am I also eligible to contribute in 2021 to my Roth IRA up to the limit of my 1 month of W2 gross earned income? I will have no other 2021 earned income. It seems like there would be a rule prohibiting what would be a double contribution, but I cannot find it. Thanks!



  • “Am I also eligible to contribute in 2021 to my Roth IRA up to the limit of my 1 month of W2 gross earned income?”
  • Yes.  The strange thing in the tax code is that the amount of compensation available to contribute to an IRA is reduced by the 401(k) contributions that are excluded from your income (elective deferrals) but not by 401(k) contributions that are not excluded from income (Roth 401(k) contributions).  IRS Pub 590-A states that the amount in box 1 of your W-2 minus any amount in box 11 is available to support an IRA contribution; your Roth 401(k) contributions do not reduce the amount in box 1.

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