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Ask the Retirement Expert: Can I Contribute To A Roth 401(k) If I'm Ineligible For A Roth IRA?

Craig Volk, RICP® •  January 8, 2016 | Your Finances, Ask the Expert

By Craig Volk

In April of 2000, Craig began his career with Northwestern Mutual. As a Wealth Management Advisor and Retirement Planning Specialist, Craig’s practice focuses on an integrated planning approach involving retirement distribution planning, investment management and wealth distribution.

Each week our Northwestern Mutual retirement experts answer your questions. This week’s question:

Can I contribute to a Roth 401(k) if income limits make me ineligible for a Roth IRA?

The answer is yes. Roth 401(k)'s are not subject to the same income limits as are Roth IRA's. Anyone can participate in his or her company’s Roth 401(k) plan and make contributions up to $18,000 in 2016 plus an additional $6,000 in 2016 for employees age 50 or over. However, this contribution amount is the total 401(k) contribution limit whether you are putting all or some of it in the Roth 401(k). For example, if you are splitting your contributions between the 401(k) and the Roth 401(k), the total contributions to both may not exceed these limits.

You can learn more about how the different plans work at the IRS website here.

Do you have a question for our Northwestern Mutual retirement experts? Click here to send your questions.

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