Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Is there any link between the contribution limits for a 401k and an IRA?

Not that I'm aware of.

For example:
Say I've contributed $5000.00 to my 401k for 2001. I have also contributed $2000.00 to my IRA. Since the two total $7000.00, I am still under the contribution limit for the 401k. Can I write off the additional $2000.00 IRA contribution?

As long as you meet the criteria, chief among them the requirements to have earned income equal to or greater than the IRA contribution (likely true since you made 401(k) contributions in your example) and an AGI that isn't too high for your filing status. Check the IRS website for the limits.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.