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Retirement Questions

SEP, 401k and Roth IRA contributions

I contribute in a 401K and my husband to SEP; 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.

 

 

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This website is intended to provide general information about 401k and IRA retirement plans. Nothing on this site should be considered legal, financial or tax advice. Please consult your tax or financial advisor for professional advice. While we strive to periodically update the information on this website, Rolloveraid.com makes no representation or warranties as to the accuracy, reliability, or completeness of any information on this site.

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