SEP, 401k and Roth IRA contributions

I contribute in a 401K and my husband to SEP IRA; do we still qualify for Roth IRA? We meet the income limit and file jointly.

Answer

According to the IRS, contributions to a Roth IRA are not affected by your participation in a 401k plan. Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth IRA. However, if your husband made elective contributions to his SEP-IRA (other than those made by his employer) then the amount he can contribute to a Roth IRA is reduced by that amount.

– This is provided that you meet the income eligibility to contribute to a Roth IRA in the first place. (see http://www.rolloveraid.com/RothIRAEligibility.htm for more details)

– The deadline to contribute to a Roth IRA for any given year is April 15 of the following year.