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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hello, My wife and I both work, and file married/jointly.

Resolved Question:

Hello,

My wife and I both work, and file married/jointly. We both contribute the max to our work 401k programs ($17.5). We are both under 50. Can we contribute to other IRA or Roth IRA programs in addition to the 401k if we have those maxed out?
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Hello, and welcome. Thanks for your question and thanks for requesting me directly

Megan C :

How are you doing today?

Megan C :

The answer to your question is yes, you can contribute to Roth and traditional IRAs, although your deduction for the traditional IRA could be limited since you are covered by a retirement plan at work.

Customer:

If we both have 17.5 in our 401k, can we contribure 5.5 to a roth IRA? How do i find the limits/conditions?

Megan C :

Yes, you could contribute 5,500 to a Roth IRA ... with the Roth there are no deductions available, you are funding with after tax money

Megan C :

but if you wait until retirement to draw, 100% of the withdrawal is tax free

Customer:

what about a traditional IRA - are we able to contribute to that? and if so, would that be before tax?

Megan C :

Yes, you would be able to contribute to that, but your deduction may be limited, as such you would have after tax money in there too. Which, when you take the after tax money back out it is not taxed again. But, your earnings would be taxed.

Megan C :

It depends on your income. CLICK HERE for the limitations.

Customer:

got it. this is very helpful. thank you.

Customer:

i believe i know my path...

Megan C :

Great. Glad I could help. IF you would, please take a moment to rate my response positive so that I may receive credit for assisting you today

Customer:

will do. thx.

Megan C :

You're welcome

Megan C :

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