3 ms·
While not wrong, you are looking at them in a vacuum, which isn't really appropriate for much of this crowd. If you have a 401k at work, contributions for IRAs
by jcdavis 10y ago
While not wrong, you are looking at them in a vacuum, which isn't really appropriate for much of this crowd.
If you have a 401k at work, contributions for IRAs start phasing out at lower income than Roth IRAs (In fact Roth IRAs have no income limits if you are willing to do a backdoor contribution). Its often not "Roth vs Traditional", but rather "Roth vs normal taxed account"
- BHSPitMonkey 10y ago> If you have a 401k at work, contributions for IRAs start phasing out at lower income than Roth IRAs Can you link to a source for this? I was not under the impression that IRA contribution income limits were impacted by whether or not you also have a 401k at work.
- jcdavis 10y agoWikipedia has the tables listed: https://en.wikipedia.org/wiki/Traditional_IRA#Income_limits https://en.wikipedia.org/wiki/Traditional_IRA#Income_limits Note that really its not a real contribution limitation, just a phase out of the contributions being tax deductible, which is most of the point of using an IRA
- BHSPitMonkey 10y agoI still don't see what that has to do with additionally having a 401k, though. Where is the stipulation that having a 401k affects your phase-out for Traditional IRA deductions?
- jcdavis 10y agoFrom that wikipedia article: "If a taxpayer's household is covered by one or more employer-sponsored retirement plans, then the deductibility of traditional IRA contributions are phased out as specified income levels are reached (Modified Adjusted Gross Income is between)." There is no deduction phase out if you don't have a 401k available through work, but that is not the common case