I have been contributing to a Roth 401k, do I enter this information in the roth IRA section?

[AnnetteB · Accepted solution]

No, you do not enter any information about Roth 401k contributions in the Roth IRA section of your return.

If you are contributing to the Roth 401k as a self-employed person, then there is a place to enter that information.  Otherwise, if your contributions are through an employer they will be shown on your W-2 and entered along with your other W-2 information. 

For the case of a self-employed 401k contribution, use these steps to go to that section of your return:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “self-employed retirement” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to self-employed retirement”

• Click on the blue “Jump to self-employed retirement” link and enter your information

[AlTax1]

I am self employed, but never contributed to roth 401k. I have already contributed to roth IRA last year. My Question is: can I contribute to both of these plans?

Thanks in advance,

[JohnB5677]

No.  If you've been contributing to your Roth 401(k) at work, it will be reflected as a reduction in wages in box 1 of your W-2.  There is no need to make any other entries.

[JohnB5677]

Yes, you can invest in both an Roth IRA and a 401k (or a Roth 401k and a Roth IRA) at the same time, or any combination of those accounts.

Here are the IRA limits for 2021:

• The IRA contribution limit is $6,000.
• The IRA catch-up contribution limit will remain $1,000 for those age 50 and older.
• 401(k) participants with incomes below $76,000 ($125,000 for couples) are additionally eligible to make traditional IRA contributions.
• The Roth IRA income limit is $140,000 for individuals and $208,000 for couples.
• The saver's credit income limit is $33,000 for individuals and $66,000 for couples.

@AlTax1