Roth IRA
If a client has a Safe Harbor 401(K) plan with a Roth 401(K) provision and fully funds the Roth 401(K), can client still contribute to a regular Roth IRA as well (assuming AGI is below threshold).
If a client has a Safe Harbor 401(K) plan with a Roth 401(K) provision and fully funds the Roth 401(K), can client still contribute to a regular Roth IRA as well (assuming AGI is below threshold).
Permalink Submitted by Alan Spross on Tue, 2008-04-08 01:13
Yes. Roth IRA contributions are only affected by:
1) Having the earned income
2) Not exceeding the modified AGI amounts for filing status and generally not filing married/separate because of the very low income requirement.
With a Roth 401k, it is advisable to also have a Roth IRA to get the 5 year clock running because when a non qualified Roth 401k is transferred to a Roth IRA later on, the IRA aging rules apply to the combined account.