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-   -   401(k) contribution limits increase (https://www.airlinepilotforums.com/money-talk/117715-401-k-contribution-limits-increase.html)

Aero1900 11-01-2018 09:34 AM

401(k) contribution limits increase
 
The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $18,500 in 2018 to $19,000 in 2019

123494 11-02-2018 10:35 AM

Think itís time for them to increase IRA limits also

Name User 11-02-2018 01:12 PM

Quote:

Originally Posted by 123494 (Post 2701683)
Think it’s time for them to increase IRA limits also

IRAs have no contribution limits, and they upped it to $6k.

swaayze 11-03-2018 08:23 AM

Quote:

Originally Posted by Name User (Post 2701781)
IRAs have no contribution limits, and they upped it to $6k.

That statement needs a huge asterisk ****** (for a lot of folks).

123494 11-03-2018 09:11 AM

Quote:

Originally Posted by Name User (Post 2701781)
IRAs have no contribution limits, and they upped it to $6k.

Then what would you call $6k? Is that not considered a limit?

BeechPilot33 11-03-2018 09:59 AM

Quote:

Originally Posted by Name User (Post 2701781)
IRAs have no contribution limits, and they upped it to $6k.

That is incorrect. There are restrictions. And we are talking about ROTH IRA.

It goes from a max contribution of 5500 in 2017 to 6000.

If your AGI is more than 193k you can not contribute the full 6,000. If it is 203k plus you can not contribute at all. In this case you could do a Backdoor Roth where you contribute to a Traditional IRA and convert it to a ROTH later on.

Name User 11-03-2018 08:23 PM

Quote:

Originally Posted by swaayze (Post 2702202)
That statement needs a huge asterisk ****** (for a lot of folks).

No, it doesn't. Income doesn't dictate one's ability to contribute to an IRA (assuming you earned enough to contribute, you cannot contribute if you don't earn income, but I assume you weren't referring to that).

Name User 11-03-2018 08:27 PM

Quote:

Originally Posted by BeechPilot33 (Post 2702243)
That is incorrect. There are restrictions. And we are talking about ROTH IRA.

It goes from a max contribution of 5500 in 2017 to 6000.

If your AGI is more than 193k you can not contribute the full 6,000. If it is 203k plus you can not contribute at all. In this case you could do a Backdoor Roth where you contribute to a Traditional IRA and convert it to a ROTH later on.

Nowhere was Roth IRA mentioned. It was strictly IRA. The two are different in that the regular or "traditional" IRA is typically pretax (if income allows it to be deducted) and Roth IRAs are post tax.

However one can contribute to an IRA at any income equal to or above their contribution and then convert to a Roth IRA. This is typically done if you cannot deduct the regular/traditional IRA contribution.

Name User 11-03-2018 08:30 PM

Quote:

Originally Posted by 123494 (Post 2702224)
Then what would you call $6k? Is that not considered a limit?

I wasn't sure if you were referring to the income limitations on deductibility or contribution limits in your post.

Tokyo 11-04-2018 03:58 AM

Quote:

Originally Posted by Name User (Post 2702529)
No, it doesn't. Income doesn't dictate one's ability to contribute to an IRA (assuming you earned enough to contribute, you cannot contribute if you don't earn income, but I assume you weren't referring to that).

And just for clarity, a non-working spouse (no earned income) can make contributions to their IRA.


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