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Level 2
posted Jun 3, 2019 1:12:26 PM

Can I still contribute to Roth IRA at $6500 even after maxing out on the company's 401K at $24500 for 50+ year of age?

I've maxed out on my company's 401K at $24500 (50+ years of age) for year 2018.  Can I still contribute to Roth IRA on my own for maximum $6500?  And since the Roth IRA Is an after tax account, there's no tax credit on the annual tax return, correct?


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1 Best answer
Expert Alumni
Jun 3, 2019 1:12:28 PM

Roth IRA contributions are not deductible.

As you have a 401(k) plan at work, you are considered as covered by a retirement at work. Depending on your AGI, your contributions to a Roth IRA may be reduced or phased out.

Please see this IRS document for more information:

https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that...

2 Replies
Expert Alumni
Jun 3, 2019 1:12:28 PM

Roth IRA contributions are not deductible.

As you have a 401(k) plan at work, you are considered as covered by a retirement at work. Depending on your AGI, your contributions to a Roth IRA may be reduced or phased out.

Please see this IRS document for more information:

https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that...

Level 2
Jun 3, 2019 1:12:28 PM

Thanks!