Roth and 401k Tax Implications Question

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know there's a $5500 limit on Roth/IRA combos, but does that tie into the 17500 max on a 401k?

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If you're pure ROTH on your IRA, one shouldn't affect the eligibility of the other. The only implication for your 401K would be if you had your own, tax-deferred IRA - there is some overall cap on that.

But, if you qualify for ROTH, the 2 are completely separate and unrelated.

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But, if you qualify for ROTH, the 2 are completely separate and unrelated.

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Thats what I thought... F that guy

I can max out my Roth IRA of 5500 and still go into a 401k for 17500.

I just can't do both a Roth/Traditional IRA for more than 5500.

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The only implication for your 401K would be if you had your own, tax-deferred IRA - there is some overall cap on that.

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Not really.

Under normal circumstances, your limit on the IRA (whether it is a Roth or a Traditional) is unaffected by the limit on the 401(k). There's no problem maxing both, in fact I do that myself. But ...

The amount you can contribute to your 401(k) and *deduct* from your taxes can be impacted in certain situations. For example, if you are married and your spouse has a 401(k) or some other employer pension plan. On the flip side, if you contribute to your 401(k) that reduces your AGI, which can matter if you are over the limit at which you can contribute the full IRA amount.

So there can be some tricks in play here and if you might qualify you really need to just read IRS pubs 560 and 590. But normally this doesn't apply (especially if you are single) and you can max both.