Erick, can I contribute to my 401k AND a Roth IRA?
Yes, tax payers can max out their contributions to both 401ks and Roth IRAs, assuming their income threshold is below the amount that would prohibit contributing to the Roth.
| Filing Status | 2022 or 2023 Income range | Maximum Annual Contribution |
|---|---|---|
| Married filing jointly or qualifying widow(er) | 2022: Less than $204,000. 2023: Less than $218,000. | 2022: $6,000 ($7,000 if 50 or older). 2023: $6,500 ($7,500 if 50 or older). |
| 2022: More than $204,000, but less than $214,000. 2023: More than $218,000, but less than $228,000. | Contribution is reduced | |
| 2022: $214,000 or more. 2023: $228,000 or more. | No contribution allowed |
Does that mean I can max out both my Roth 401k and Roth IRA? Yes, see table above. It works the same way.
So if you find yourself behind on your retirement savings, this is a great opportunity to catch up.
Book a free consultation today to learn more.
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This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. For more information on the risks associated with the strategies and product types discussed please visit https://lplresearch.com/Risks
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