topic how much can i contribute to an IRA in Retirement tax questions

how much can i contribute to an IRA

s d l — Wed, 15 Jan 2025 03:35:15 GMT

Can I contribute $14K ($7K to my IRA and another $7K for my wife's IRA) with this scenario? if not, what is the maximum we can contribute?

This is combined for both of us:

$34,000 gross earnings

-$24,000 401K contribution

-$3,000 Social Security and Medicare tax ( I did not withhold Fed and state tax, will pay that using est tax form)

$7,000 net pay

My goal is to maximize the contribution our retirement accounts.

Re: how much can i contribute to an IRA

Bsch4477 — Wed, 15 Jan 2025 04:15:00 GMT

The IRA contribution cannot be more than your earned income with a maximum contribution of $7,000 for each if under age 50. That’s the sum of your incomes in Box 1 of your W-2 forms.

Re: how much can i contribute to an IRA

dmertz — Wed, 15 Jan 2025 05:52:59 GMT

The combined IRA contributions are limited to the amount in box 1 of the W-2. That appears to be $10,000, so there would be $4,000 of excess contribution if $7,000 was contributed to each spouse's IRA. However, if the 401(k) contribution was to a designated Roth account in the 401(k), that contribution would not reduce the box-1 amount, making $34,000 available to support IRA contributions.

Re: how much can i contribute to an IRA

s d l — Wed, 15 Jan 2025 18:28:16 GMT

the 401K contributions were roth, that means we can still contribute $7K each in our IRA. Thanks.