gajab
Mar 19, 2011, 04:53 PM
Few Qs?
1. Is employer contribution counted for maximum allowed contribution in 401K?
Example: During year 2010 employee contribution was $16000 and employer did $8000 as matching contribution. In this case does the employee (tax payer) has crossed the maximum limit of 401k i.e. $16500 or not?
2. Is maximum tax deductible contribution in IRA depends on contribution in 401K?
Example: During year 2010 Mr. X (45 yrs) earned $85000 and contributed $14000 towards 401K (No employee matching contribution). Mr. X is married (spouse not working) and filing jointly. Can Mr. X contribute maximum tax deductible i.e $5000 in IRA? Further, Can Mr. X contribute another $5000 in IRA against spouse IRA?
Thanks
Can Mr. X contribute $5000
1. Is employer contribution counted for maximum allowed contribution in 401K?
Example: During year 2010 employee contribution was $16000 and employer did $8000 as matching contribution. In this case does the employee (tax payer) has crossed the maximum limit of 401k i.e. $16500 or not?
2. Is maximum tax deductible contribution in IRA depends on contribution in 401K?
Example: During year 2010 Mr. X (45 yrs) earned $85000 and contributed $14000 towards 401K (No employee matching contribution). Mr. X is married (spouse not working) and filing jointly. Can Mr. X contribute maximum tax deductible i.e $5000 in IRA? Further, Can Mr. X contribute another $5000 in IRA against spouse IRA?
Thanks
Can Mr. X contribute $5000