Are 401(k) & IRA Contribution Limits Mutually Exclusive?
Are the ,000 401(k) 2017 limit and the ,500 IRA limit mutually exclusive for a combined limit of ,500 (under 50)?
Or are they inclusive, meaning ,500 in an IRA, would limit a 401(k) to ,500?
I'm also assuming employee matching count towards these limits. Is this correct?
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They are mutually exclusive. Provided you meet the income limits you can contribute to both. Employer match do not count toward the 18K.
On the other hand traditional IRA and Roth IRA are inclusive. So if single and making having a MAGI under 118K, you could do the 18K of your own money into a 401(k), and ,500 into a Roth.
You can put in ,500 of your own money with the employer match on top of that.
Are the ,000 401k 2017 limit and the ,500 IRA limit mutually exclusive for a combined limit of ,500 (under 49)?
Yes, but the amount that you can deduct from a traditional IRA depends on your gross income and marital status - See publication 590-A for details. Also note that the limit applies to your combined traditional and Roth IRA contributions (meaning you can't contribute ,500 to both; just a total of ,500 between the two).
I'm also assuming employee match $ count towards these limits - is this correct
No - the limit for combined contributions between you and your employer is ,000 in 2017. So if you contribute ,000 your employer can only contribute ,000.
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