Our combined AGI is less than 160K and we both contribute the maximum of 14% to our respective company's 401K plan. I will be 50 this year and my wife is 40. What amounts, if any, can we contribute to additional tax-advantaged accounts? Also, do our employers have to accept catch-up payments to their 401K plans?
2007-03-06 01:36:59 · 3 answers · asked by Samuel B 1 in Business & Finance ➔ Personal Finance
Yes you can as long as you meet the AGI requirements. he amount depends on your AGI.
Check out the link to the IRS website below. There is a lot of good information about retirement account contributions.
2007-03-06 01:50:02 · answer #1 · answered by R Worth 4 · 1⤊ 0⤋
Your employer doesn't HAVE to accept catchup payments. Most likely they do and just haven't told you that it's allowed. Also, most likely they don't have a 14% limit in your respective companies 401k plan. Few years back most plans removed the % limitations from their plans. Government limit is 100% of comp up to 15.5k for 2007.
If your plans don't allow for those contribution levels and don't allow for catchups you need to talk to your boss/hr. There is absolutely no reason for them to limit you anymore.
But, likely you can't contribute to a deductible IRA...try the ROTH.
2007-03-07 02:51:48 · answer #2 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
contribute to Roth401K.
www.letsgobble.com
2007-03-06 01:40:04 · answer #3 · answered by chase11209 2 · 0⤊ 1⤋