@qofmiwok wrote:
Not if you can use the same earned income for both a Roth 401k and a Roth IRA.
ie My original question was, you have $10k earned income which you put into a Roth 401k, then you put another $7k into a Roth IRA. That just gave you $17k of tax free Roth accounts on $10k earned income. Meaning you never pay tax on the $7k.
The money that goes into a Roth 401(k) *is* taxed. Only after-tax money can go into a Roth. Before tax money will not be in box 1 on a W-2 - it will only be in box 12 code D for non-Roth 401(k). Roth will have code AA.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
