IRA Contributions
Do maximum income limits apply to both a Roth 401K account and a Traditional Roth account? Combined or individually?
My wife and I exceeded the income limits last year and I had to withdraw my 2022 contributions before filing taxes to avoid penalties. Luckily, I was over 59 1/2. (Its was a Roth 401K). My wife was not so lucky until later in the year when she withdrew to avoid a carryover penalty for 2023 taxes. Both of us stopped contributing to Roth because of our joint income and maxed out of Traditional 401k contributions.
But I am now hearing different guidance. With a joint income over $300k, can we make any kind of Roth (Trad or 401k) contributions? Both of us are over 59 1/2?
Permalink Submitted by Alan - IRA critic on Wed, 2024-01-17 19:24
There are no max income limitations for contributions to a Roth 401k, as there are for Roth IRA. Are you sure that the corrective distributions you are referring to were not taken from your Roth IRAs?