DW will work just few days in 2019, then retire.
She will receive PTO payout as part of the last paycheck for 2019. She opted to deduct 50% for 401K and will contribute about $12,000. She is older than 50, and the total 401K limit+catch up, will be $25,000 for 2019.
Traditional IRA limit for 2019 is $6000 + $1000 catch up, total $7000.
My question is: after she contributes $12,000 in 401K, can she still contribute to a Traditional IRA since she has not max out her 401K limit of $25,000?
She will receive PTO payout as part of the last paycheck for 2019. She opted to deduct 50% for 401K and will contribute about $12,000. She is older than 50, and the total 401K limit+catch up, will be $25,000 for 2019.
Traditional IRA limit for 2019 is $6000 + $1000 catch up, total $7000.
My question is: after she contributes $12,000 in 401K, can she still contribute to a Traditional IRA since she has not max out her 401K limit of $25,000?