Maxing Out Retirement Contributions
I can’t find any information on the total that I can contribute to a 401(k) and an IRA. Can I contribute the maximum to both of these plans? What happens the year that I turn 50?
Yes, you can max out both your 401(k) and your IRA in the same year, which is a great way to boost your savings.
In 2013, you can contribute up to $17,500 to a 401(k) and up to $5,500 to an IRA. And you can make catch-up contributions to both plans starting in the year you turn age 50 -- an extra $5,500 in your 401(k) and an extra $1,000 in your IRA, bringing the total to $23,000 for your 401(k) and $6,500 for your IRA.
Got a question? Ask Kim at firstname.lastname@example.org.