Is this combined traditional IRA and Roth IRA maximum contribution of $7k true? Vanguard states that the maximum employee Roth contribution for 2024 was $23k?
Is this combined traditional IRA and Roth IRA maximum contribution of $7k true? Vanguard states that the maximum employee Roth contribution for 2024 was $23k?
It depends, your question combines information from different contribution limits. See the information below for the maximums of each type of contributions:
Traditional and Roth IRA Contribution Limits for 2024:
The combined contribution limit for traditional and Roth IRAs is $7,000 if you are under age 50.
If you are age 50 or older, the limit is $8,000
401(k) and 403(b) Contribution Limits for 2024:
The employee contribution limit for 401(k) and 403(b) plans is $23,000.
If you are age 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $30,500
Vanguard was referring to a designated Roth account in an employer plan, not to a Roth IRA. They are two different types of Roth accounts established under different sections of the tax code.