IRA Limitations

[Paul-G-328]

Can a taxpayer over 50 contribute up to $7,500 to a combination of an IRA AND an employee 403-B state pension AND also contrubute another $7,500 to a Roth IRA in the same year?

[IRonMaN]

No

[qbteachmt]

This is stated oddly: "up to $7,500 to a combination of an IRA AND an employee 403-B state pension"

The IRA is an individual retirement account. The 403B is an employer-provided provision. So, they are not combined like that.

For instance, here is a great article for Roth + 403b:

https://www.investopedia.com/ask/answers/101314/what-are-advantages-and-disadvantages-getting-403b-v...

You'll find similar articles that compare and contrast and tell you when something is combined with something else (such as all employer plans would share one limit).

[Paul-G-328]

So than, despite having a 403-B you can still can contribute to an IRA and a Roth IRA but the only up to the yearly total of $7,500? (He is over 50 and is under the income level to qualify) 

[sjrcpa]

Yes.

[qbteachmt]

"He is over 50"

Here's one of the most significant differences:

403(b) contribution limits are $22,500 in 2023, and $23,000 in 2024. 403(b) catch-up contributions let those who are 50 and older save an extra $7,500 in 2023 and 2024. All of that is put into the 403(b). Don't be confused that the value $7,500 appears in different provisions. They don't link.

[Paul-G-328]

Okay but leaving the 403-B aside, can he contribute $7,500 into to each of an IRA AND a Roth?

[IRonMaN]

Back to yesterday's answer - no.  $7500 in total to IRAs, not $7500 each.

[qbteachmt]

"$7,500 into to each of an IRA AND a Roth?"

Are you using any IRA resources? Are you using any web resources? Or are you relying on peer users to do the work for you?

I googled:

ira vs roth ira contribution limits

and the very first result is:

"The maximum amount you can contribute in 2024 across all your IRAs—traditional or Roth—is $7,000 ($8,000 if you're age 50 or older). However, some rules affect IRA contributions and deductibility."

Also on the results listing:

https://www.investopedia.com/retirement/ira-contribution-limits/

Change your google term to:

ira vs roth ira contribution limits irs

And you can even start from a Subject listing:

https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans

[abctax55]

@Paul-G-328 

To really simplify - a Roth  " IS "  an IRA.