Question: May an employee who has a Roth 401(k) account also contribute to a Roth individual retirement account (IRA)?
Generally, yes. However, Roth IRA contributions are restricted for high earners. Assuming an employee’s income is within the applicable limits, the employee may contribute to both accounts in the same year. For 2014, IRA contributions may be as much as $5,500, plus a $1,000 “catch-up” contribution if age 50 or older. 401(k) plan limits can vary, but generally the maximum deferral is $17,500, plus another $5,500 of catch-up contributions if eligible.
Original content provided by: Client Line Newsletter