What is the difference between the $6,000 IRA contribution limit and the 19,500 IRA limit? What is the total amount you can contribute to both a Traditional and Roth IRA?

I am filing my taxes as a single person contributing to both a traditional and roth IRA. I am confused by two supposed limits and what they apply to. Some articles are saying there is a $6000 limit on all contributions to either IRA while others are saying there is a 19,500 limit. I contribute about 5000 to traditional and 5000 to roth, am I over the limit or what?

771

Expert Alumni

Mar 20, 2022 2:22:57 PM

The $19,5000 is the limit you can contribute to a 401k plan through your employer, while The $6,000 max applies to IRAs. If you contributed $10,000 to IRAs you are over the limit.

The annual contribution limit for 2019, 2020, 2021, and 2022 is $6,000, or $7,000 if you're age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income. See IRA Contribution Limits.

Deferral limits for 401(k) plans The limit on employee elective deferrals (for traditional and safe harbor plans) is $19,500 in 2021.

Level 15

Mar 20, 2022 2:27:40 PM

And if you contributed from your paychecks it was probably to a 401K and you s do not enter that under deductions as a IRA contribution. Only enter it from the W2 nowhere else.

A 401K is not the same as a IRA. They are different things.

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What is the difference between the $6,000 IRA contribution limit and the 19,500 IRA limit? What is the total amount you can contribute to both a Traditional and Roth IRA?