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dgheggie6240
New Member

I contributed $24000 to my 401K can I contribute to an IRA?

 
1 Best answer

Accepted Solutions
dmertz
Level 15

I contributed $24000 to my 401K can I contribute to an IRA?

If you have sufficient eligible compensation after having made the $24,000 elective deferral to the 401(k), and you had not reached age 70½ in 2016 or earlier, you can also make a regular personal traditional IRA contribution for 2016 (up to the maximum of $6,500 for being over age 50).  However, because you are covered by a workplace retirement plan, your ability to deduct a regular personal IRA contribution may be limited by your modified AGI.

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7 Replies
miclloyd99
New Member

I contributed $24000 to my 401K can I contribute to an IRA?

even if my only other income comes from a rental property?
dmertz
Level 15

I contributed $24000 to my 401K can I contribute to an IRA?

If you have sufficient eligible compensation after having made the $24,000 elective deferral to the 401(k), and you had not reached age 70½ in 2016 or earlier, you can also make a regular personal traditional IRA contribution for 2016 (up to the maximum of $6,500 for being over age 50).  However, because you are covered by a workplace retirement plan, your ability to deduct a regular personal IRA contribution may be limited by your modified AGI.

KatrinaB
Intuit Alumni

I contributed $24000 to my 401K can I contribute to an IRA?

I have edited the answer above.
davekluegel
New Member

I contributed $24000 to my 401K can I contribute to an IRA?

I have already contributed $6500 to  2017 Traditional IRAs for my wife and I.  Can I also contribute to a tax-deferred 401(k) in 2017.  I have $144K in salary income, and will have an adjusted gross income of about $207K in 2017.
dmertz
Level 15

I contributed $24000 to my 401K can I contribute to an IRA?

Yes, you can (assuming that your employer provides such a plan and you meet the plan's eligibility requirements).

With an AGI of $207K, being an active participant in a 401(k) will make both your traditional IRA contribution and your wife's traditional IRA contribution entirely nondeductible.
KatrinaB
Intuit Alumni

I contributed $24000 to my 401K can I contribute to an IRA?

You have made the maximum contribution amount to your 401-K plan, however you are eligible to contribute to an IRA.

The 2016 contribution limit for a 401(k) is $18,000; $24,000 if you’re 50 and over.

Then you can also deposit up to $5,500 in a Roth or traditional IRA for 2016 ($6,500 if you’re 50 and up). That’s the combined limit for both types of IRAs, by the way. You can’t put, say, $5,500 each into an IRA and a Roth IRA.

[edited, 03-05-17]
dmertz
Level 15

I contributed $24000 to my 401K can I contribute to an IRA?

Regular personal traditional IRA contributions are subject to a separate limit (section 219, not section 402(g)).
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