Comments on: Does the $5K maximum IRA contribution apply to Roth IRAs only? Does it also apply to employer-sponsored 401Ks? http://www.iraroth.net/2010/01/does-the-5k-maximum-ira-contribution-apply-to-roth-iras-only-does-it-also-apply-to-employer-sponsored-401ks/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: roderick_young http://www.iraroth.net/2010/01/does-the-5k-maximum-ira-contribution-apply-to-roth-iras-only-does-it-also-apply-to-employer-sponsored-401ks/comment-page-1/#comment-479 roderick_young Wed, 27 Jan 2010 20:20:17 +0000 http://www.iraroth.net/2010/01/does-the-5k-maximum-ira-contribution-apply-to-roth-iras-only-does-it-also-apply-to-employer-sponsored-401ks/#comment-479 As I read it, for MOST PEOPLE the Roth IRA and 401k are independently judged, and contributing up to the limit on a 401k does not diminish the amount one is allowed to contribute to a Roth. One exception is if you made a LOT of money in 2008 - you can read the instructions in the IRA publication 590 (get it from www.irs.gov) to see if this is the case with you. If you made less than, like $150,000 last year, I wouldn't worry about that restriction. As I read it, for MOST PEOPLE the Roth IRA and 401k are independently judged, and contributing up to the limit on a 401k does not diminish the amount one is allowed to contribute to a Roth. One exception is if you made a LOT of money in 2008 – you can read the instructions in the IRA publication 590 (get it from http://www.irs.gov) to see if this is the case with you. If you made less than, like $150,000 last year, I wouldn’t worry about that restriction.

]]> By: AB http://www.iraroth.net/2010/01/does-the-5k-maximum-ira-contribution-apply-to-roth-iras-only-does-it-also-apply-to-employer-sponsored-401ks/comment-page-1/#comment-478 AB Wed, 27 Jan 2010 19:47:51 +0000 http://www.iraroth.net/2010/01/does-the-5k-maximum-ira-contribution-apply-to-roth-iras-only-does-it-also-apply-to-employer-sponsored-401ks/#comment-478 It applies only to Roth or Traditional IRAs. A 401k has a maximum of $15,500 for 2008. If you have a 401k, you can't have a Traditional IRA but you can contribute fully to a Roth IRA. That means you can contribute $15,500 to a 401k and $5,000 to a Roth IRA for 2008. It applies only to Roth or Traditional IRAs. A 401k has a maximum of $15,500 for 2008. If you have a 401k, you can’t have a Traditional IRA but you can contribute fully to a Roth IRA.

That means you can contribute $15,500 to a 401k and $5,000 to a Roth IRA for 2008.

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