aliciavpIs there a limit on the amount of the combined contributions one can make to a 401k PLUS an IRA?For complete answers, the IRS Publication 590 addresses the subject and it can be viewed for free here:http://www.irs.gov/pub/irs-pdf/p590.pdfMy understanding of the rules is that one can contribute up to $12,000 this year in a 401K plus, if one is over age 50, then they can put a "catch up" extra amount of up to $2,000 into the 401K. These limits are for the employees contributions only. The employer's contribution is in addition to these limits. I believe the employer can raise the total to up to $40,000 total contributions per employee 401K, but I am not certain of that particular number.Separate from the 401K contribution limits, a person can contribute to a traditional IRA account as well. The yearly limit is currently $3,000. If the individual is over age 50, a "catch up" amount of $500 is allowed, raising the yearly contribution limit to $3,500.But, I don't know whether there is a tax limit on total contributions for retirement savings. In addition to the above contribution limits, the IRS has limits on who can contribute. For example high income persons may not be able to participate in the IRA, as one's contribution limits start getting "phased out" once their Adjusted Gross Income (AGI) gets above a certain level. Publication 590 covers this.There is no limit (as far as I know) on how much can accumulate in an IRA.Hope this helps.PosFCF
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra