Can I use a 401(k) contribution to qualify for a Roth IRA?
March 16, 2005
Date: 22 Feb 2005
From: Richard
I am getting so many conflicting reports from tax accountants and lawyers. Please help me get the answer to this. Do contributions to a 401(k) plan reduce adjusted gross income so that I can get under the $150,000 limit and contribute to a Roth? For example, if someone has income of $160,000 before a 401(k) contribution of $14,000, is he or she eligible to contribute to a Roth, also?
Answer
Date: 04 Mar 2005
Hello Richard,
Yes. Unlike regular IRAs, participation in another qualified plan doesn't disqualify a taxpayer from participating in a Roth. The limitation is based on "modified adjusted gross income". See pages 54, 56 and 72 of IRS Publication 590 for worksheets to compute the limitation amount. The IRS web site is www.irs.gov.
Good luck!
Mike Gray
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links
© 2025
Connect on LinkedIn
Connect on BlueSky
Connect on Instagram
Our Blog