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Contributions to solo 401k and IRa

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  • Contributions to solo 401k and IRa

    If I am maxing out my solo 401k and my wife’s 401k at 60k each per year, am I allowed to contribute to a deductible IRA?

  • #2
    you make too much to deduct a tIRA, but you can contribute.

    you make too much to contribute to a rIRA.

    this leads to the backdoor rIRA.


    • #3
      No. Neither of you can deduct a traditional IRA nor contribute directly to a Roth IRA at that income level with a qualified plan.

      Your option for IRA contributions is the "backdoor" Roth IRA, which is a non-deductible traditional IRA contribution followed by an untaxed Roth conversion. That can be done at any income level.

      If you have any pretax IRA money, it causes the conversion to be taxed on a pro rata basis. Hence if you have any pretax money in traditional, SEP, or SIMPLE IRAs, you should do a rollover into a non-IRA qualified plan like a 401(k).