Question

Contributions to Roth if contributing to 401k?

Forum|Forum|6 years ago
April 2, 2020
1 reply
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Hi,

Are we allowed to contribute to a Roth IRA if we are contributing to a 401k?

I recently inherited some money, and since that money is non-taxable, I wanted to contribute to my wife's and my Roth, so we would never have to pay tax on that money's investments.

Are there any restrictions are requirements to do this?

Thanks you.

D

DavidD66

There are income limits for contributions to a Roth IRA. If you are Married Filing Joint and your modified adjusted gross income is less than $193,000 you can contribute the maximum to a Roth IRA - $6,000 ($7,000 if your age 50 or older) for 2019 & 2020. For more information on the income limits, see: Roth IRA Income Limits

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S

scotttigerAuthor

Thank you David D.

So yes, my wife are both over 50, so I could conceivably make contributions to both Roth IRA's for $7K and never pay tax on those dollars again. Nice.

I was just worried there was some kind of restriction making that contribution since I was also contributing to a 401k as well.

Nearing retirement age -- sounds like the smart play.

H

HelenC12

You can contribute to an IRA even if you or your jointly-filing spouse are covered by an employer-sponsored retirement plan such as a 401(k).

How much of the IRA contribution you can deduct, if any, is based on your filing status and modified adjusted gross income.
We’ll figure that out for you. Enter the amount you want to contribute in TurboTax and decrease until you get to the amount you can contribute (if any) without a penalty.

There are maximum income limits for Roth IRA contributions.

In 2019, married individuals filing jointly can contribute to a Roth IRA if your modified adjusted gross income (MAGI) is below $203,000.
The benefit phases out between $193,000 and $203,000.
If your income exceeds $203,000, you are not eligible to contribute any amount to a Roth IRA for 2019.

Source: TurboTax FAQ

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