We received a great question yesterday from one of our clients.  Both the husband and the wife had received salary increases and wanted to know if they could still contribute to a Roth 401k even though their income had exceeded the limits to contribute to Roth IRAs.  Here’s the answer…

Roth IRAs have income limits. Roth 401k plans do not. Anyone can make Roth 401k contributions as long as they’re eligible to participate in the company plan. There are no income limits as there are with a Roth IRA, so even higher earners can participate. At your age the annual contribution limit is $18,000. This is an aggregate limit. You can split contributions between Traditional and Roth 401k plans but total contributions cannot exceed $18,000.

CATEGORY: Employee Benefits • Retirement Planning | February 23rd, 2018 | BY: Neal Pettinelli