Mar 29

Question by momo: What’s the 2008 contribution limit for Roth 401k and Roth IRA combined?
Like the question asks what is the combined total limit for the Roth 401k and the Roth IRA? I’ve read too much conflicting information that you can contribute the full 5k in the Roth IRA and 14k in the Roth 401K? Then I’ve checked with financial advisors and they indicate otherswise. Hm, please CITE sources with your response, need accurate information.

Lastly, if anyone know what the combined limit between the Roth401k, Roth IRA and the traditional 401k also list it as well.

Thanks!
Can Icontribute to all three: Roth 401k, 401k and the Roth IRA?

I know you can do the last two but what about all three?

I am of course referring to just partial amounts so I don’t exceed the 15k annual limit and the as far as I know the 5k limit for the Roth IRA is considered separate. Thanks!
Forgot to mention within the Roth IRA AGI limits and under the age of 50.

Best answer:

Answer by v b
The 401K roth is simply another 401K choice. If the limit is $ 15,000, then if you put $ 10,000 into the ROTH 401K, you only have a potential $ 5,000 for the regular 401K.

Since a regular 401K doesn’t prevent one from contributing to a ROTH IRA, a ROTH 401K won’t prevent one either.

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one comment so far...

  • The Shadow Said on March 29th, 2011 at 7:06 pm:

    The 2008 limit for a 401k is $ 15,500. If you’re 50 or older in 2008, you can contribute an additional $ 5,000.

    The 2008 limit for IRAs is $ 5,000. If you’re 50 or older on 2008, it’s $ 6,000. However, your ability to contribute to a Roth IRA is reduced or eliminated if your modified adjusted gross income exceeds a certain amount. The amount depends on your filing status. See IRS Publication 17 for details. You can download it from http://www.irs.gov.

    The combined limit is the individual limits added together ($ 20,500 or $ 26,500 depending on your age and subject to adjustment if have a Roth IRA and your modified AGI exceeds the limit).

    The limits apply regardless of whether the account is a Roth, traditional, or if you put some money in one of each. For example, let’s say that you want to fully fund your IRA, you’re under 50, and your modified AGI is less than the limit for a Roth IRA. You can put $ 5,000 in a traditional IRA. You can put $ 5,000 in a Roth IRA. Or, you can put some in both accounts as long as the total contributions to both accounts combined does not exceed $ 5,000.

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