topic Can total 401k and IRA contributions exceed my earned income? in Retirement tax questions

Can total 401k and IRA contributions exceed my earned income?

jp5025 — Wed, 11 Feb 2026 03:50:33 GMT

I'm retired and working part-time. Earned income is 2,000 per year. Passive income is about 200,000. My employer allows me to contribute 100% of my salary to a Roth 401k (it works out to be less than 100% though, because of taxes). If I contribute 100% to the 401k plan can I also contribute $2,000 to my Roth IRA in the same year?

Re: Can total 401k and IRA contributions exceed my earned income?

jp5025 — Sun, 11 Feb 2024 01:58:11 GMT

I should have mentioned that I am married filing jointly and spouse does not have any earned income.

Re: Can total 401k and IRA contributions exceed my earned income?

dmertz — Sun, 11 Feb 2024 02:07:23 GMT

Amounts contributed to the Roth 401(k) do not reduce the compensation available to support an IRA contribution. The amount that will support an IRA contribution is the amount in box 1 of your W-2 minus any amount in box 11. Depending on your modified AGI for the purpose of a Roth IRA contribution, your eligibility to contribute to an Roth IRA might be limited. Your modified AGI for the purpose of deducting a traditional IRA contribution prevents you from being able to deduct a traditional IRA contribution, but your spouse might be eligible to deduct a traditional IRA contribution depending on your modified AGI for the purpose. (I assume that your spouse is not covered by a workplace retirement plan.)

Re: Can total 401k and IRA contributions exceed my earned income?

jp5025 — Sun, 11 Feb 2024 02:11:53 GMT

Thanks so much for your answer. I couldn't find a definitive answer but what I did find seemed to imply what the same thing you are saying. Thanks for taking the time to confirm!