Can Total Contributions to a Roth 403b and Roth IRAs Exceed Actual Earnings?

Submitted by Bruce Hendershot on Thu, 2019-10-10 16:22

My wife and I are both 67. I do not work. My wife works and will earn $14,000 in 2019. Her employer allows her to contribute up to 50% of her earnings ($7k) to her designated Roth 403b account. If she contributes the full allowable amount to her 403b Roth, can she also contribute the full allowable amount to both of our Roth IRAs? In other words, can she contribute $7k to her 403b, $7k to her Roth IRA and $7k to my Roth IRA for a total of $21k in contributions even though she only earns $14k? (Of course, I understand that the additional $7k would have to come from sources other than her earnings.)



Submitted by William Tuttle on Thu, 2019-10-10 17:27

  • See IRS Publication 590-A, “What Is Compensation?”
  • For W-2 employees it is your W-2 Box 1 wages minus any Box 11 amount. Designated Roth contributions to a 401k, 403b or 457b do not reduce W-2 Box 1 only pre-tax employee deferrals and other salary reductions.
  • As long as some of that $14K isn’t from non-qualifed deferred compensation distributions reported in Box 11. You will have $14K in compensation for both $7K IRA contributions.


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