English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

My wife has a traditional 401k a/c which she hasn't reach the maximum allowable contribution amount for the year ($15,000), can she still contribute to a (Roth or traditional) IRA a/c ($4,000) for the same year?

2007-03-14 09:17:09 · 5 answers · asked by FW 1 in Business & Finance Personal Finance

5 answers

Assuming that she has enough earned income, then yes-she's eligible for the full Roth IRA. However, the traditional IRA doesn't make much sense for her because chances are it won't be deductible on the tax return since she's already participating in a qualified retirement plan. If your joint income is low enough, you may be qualified to deduct the IRA, but I don't have enough info from you to make that determination.

In any case, the Roth is generally the better bet than the deductible IRA, unless you think that you'll be in a substantially lower tax bracket in retirement than you are now.

2007-03-14 09:27:08 · answer #1 · answered by SuzeY 5 · 1 0

Yes you can contribute to both a 401k and IRA. However if yor are contributing to a 401k and a traditional IRA you will not be able to deduct the tradtional IRA contributions from your taxes.

Your best advice would be contribute to your 401k up to the employers match. Then max out a Roth IRA. Then if you can max out the 401k.

2007-03-14 09:25:42 · answer #2 · answered by fdbryant3 1 · 0 1

to respond to your 2d question first...NO you received't make contributions to a 401k with a former company. you may want to roll it into your Roth or classic IRA. you're in undemanding words allowed to make contributions $4000 each year in finished to both type of IRA or a mixture of both say $3000 to the Roth and $one thousand to the classic. if you're self employed or have self employment earnings get a SEP IRA the contribution limits are a lot more beneficial and they are more beneficial accessible that 401K's.

2016-12-02 00:19:50 · answer #3 · answered by ? 4 · 0 0

She can max out 401K contributions and still place money into a Roth IRA.

2007-03-14 09:25:15 · answer #4 · answered by Anonymous · 1 0

Yes, they are separate types of accounts with different rules via the IRS. Contribute away up to the max on both if you can.

2007-03-14 09:25:30 · answer #5 · answered by Cabana C 4 · 1 0

fedest.com, questions and answers