401K and IRA – from same earned income
My college student daughter has a summer job with a 401K Roth. She makes a little over $6,000.00 in the summer. Can she contribute $6,000 to both the company 401K as well as her own ROTH IRA (assuming she has other money or her kind father gives her a gift)?
Permalink Submitted by Alan - IRA critic on Sat, 2021-05-01 17:17
Yes. The Roth 401k contributions leave her with Box 1 W-2 income, and she can use that to make Roth IRA contributions.