Deductible Ira Contribution Limits
February 15th, 2010Question: Is there a max amount you can contribute to 2 seperate 401k accounts if you are married filing joinly?
My wife’s company just added a 401k and I am considering contributing to it but was wondering if there are limits to max 401k contributions if we file married/jointly? I currently max out my 401k account and I know with our combined income status IRA contributions are no longer tax deductible so I am worried adding to her 401k will bring the same limitation.
Answer: Both you and your wife can each contribute up to $15,500 to your respective employer 401(k) plans, assuming that these are the only employer retirement plans you participate in during the year. She can contribute up to $15,500 to her 401(k) and you can still contribute up to $15,500 to your 401(k) plan. If either of you will be age 50 or over by the end of the year, you may also be eligible to make a $5,000 catch-up contribution to either or both plans. Check with your employer plan to be sure they allow catch-up contributions if you would like to contribute the additional amount and are old enough to do so.
There is often an employer matching contribution available for employees who contribute to the employer 401(k) plan. If your wife’s employer offers a matching contribution, she should generally try to contribute at least the minimum amount that would qualify her for the employer match. Otherwise, she may be leaving some valuable retirement benefits behind.
You may want to consider reducing your own contribution to allow your wife to reduce her take home pay to enable her to fund at least the amount needed to obtain any available employer matching contribution. You’ll want to verify the terms of your plans so that you maximize the benefit that you can obtain as a couple for retirement.
Items on Amazon Right Now for Deductible Ira Contribution Limits:
How unemployment affects your income taxes
If you lost your job last year, you might be in for some surprises when you file your tax return. If you got laid off near the end of the year with a big severance package or if you cashed in a retirement account, you could end up owing more than expected…. Tax – Retirement – Income tax – Unemployment – Layoff
Posted in 
Tags: