USA 2017 IRA Limits Jointly

[Lak601]

Hello there,

I believe I am right but I need an assurance please. I researched on my own that my wife and I combined can contribute towards Roth or Traditional IRA up to $5500. An accountant told me yesterday that limit is 5500 is per person. Please comment on this. Our joint income is less that 160K per year so we are well under the limits that are set by IRS. The thing is my wife gave around $950 in Roth (not 401K) from her job AND I used wealthfront.com to contribute $5500 as well. If the combine limit is 5500 per year, then I need to recharacterize 950 dollars or take it out of there otherwise I would be over the limit.

Also, can anyone comment on how much one can contribute towards 401K through an employer on top of 5500 per year in IRA. My wife started her first full time job when she was 30 (last year) and I'd like to put in as much as I can for next few years as I am self employed and don't have a 401K. I believe my accountant mentioned 17,000 per year, is that true? Or it depends on circumstances.

 

[Drmdcpa]

Based on your income level stated, you should be able to fund personal Roth OR As. Since you are dealing with the $5500, I am assuming you are under 50 years of age.

The maximum an employee can contribute to a 401k plan is $18k; again assuming you are under 50 years of age.

 

[Lak601]

Thank you for replying. Yes I’m only 31. Again, is it $5,500 per person or per couple? Thanks for max 401k plan limit.

 

[Drmdcpa]

Per person.