dmertz
Level 15

Retirement tax questions

It may seem strange, but the amount that you contribute to the Roth 401(k) has no effect on the amount that you are eligible to contribute to an IRA.  Only pre-tax elective deferrals to the traditional account in the 401(k) reduce the amount of wages available to contribute to an IRA.  In your example, $6,000 could be contributed to the Roth IRA (modified AGI permitting), no matter how much of this same income is contributed to the Roth 401(k).

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