Traditional IRA + 401k

With all the Secure changes wanted to double check this.

A 70 year old client has recently joined a new company with a 401k and a 5% match.

The 2024 limits for your own IRA is $8,000 and 401k $30,500.

Can he do $8,000 to his own IRA as long as his total does not exceed $30,500?

 



these are totally separate limits

the 8k does not taint the 30.5k. he can co both

ira must have at least 8k of earned income subject to tax to hit the 8k max.

assume makes 50k, can defer 30.5k, still have 19.5k taxed and thus do 8k to ira. deductibility of ira depends upon his if single, combined if married AGI and if he or he and/or spouse covered by a plan

 

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