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Will my Roth and trad. IRA be subject to the $7000 limit if it is inside my 401K?

 
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3 Replies
DanaB27
Expert Alumni

Will my Roth and trad. IRA be subject to the $7000 limit if it is inside my 401K?

Do you mean if you have a contribution limit for a 401(k)?

 

You can make contributions of $19,500 in 2021 (with a $6,500 catch-up if you are over 50) to your 401(k) work retirement plan. You do not enter the contribution in the Deduction & Credit section. You only have to enter your W-2 (box 12) to report these contributions.

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Will my Roth and trad. IRA be subject to the $7000 limit if it is inside my 401K?

if you have a 401k and want to make a deductible IRA contribution,

that depends on your income.

if you enter it as deductible and your tax goes up instead of down, you have a penalty tax; you are not eligible.

 

It may be partly deductible.

dmertz
Level 15

Will my Roth and trad. IRA be subject to the $7000 limit if it is inside my 401K?

A 401(k) is not an IRA.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

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