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Personal Investments • Employer Sponsored 401(k) and IRA tax deferred contribution limits

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Hello all, I have searched quite a bit for a concise direct answer to this question and thus far have failed to find what I'm looking for, additionally, I have become possibly more confused than I was on the subject to begin with.

I'll just state my goal. I would like to max out my company sponsored 401(k), personal IRA, and spousal IRA in a single year to get more tax benefit, so for 2024(I am under the age of 50, spouse is over 50) that means the following:

401(k) - 23,000
IRA - $7,000
spouse IRA - $8,000

Total: $38,000 tax deferred retirement contributions

If total compensation was $194,900, deductions would be:

tax deferred retirement accounts: $38,000,
Standard deduction married filing jointly: $21,900
Health insurance Premiums and FSA: $12,000

Total deductions: $71,900
194,900 - 71,900 = $123,000 AGI

if AGI is under $123,000 for 2024 as it appears there is a phase out starting at MAGI $123,000 according to IRS:

IRS:
"For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000."

https://www.irs.gov/newsroom/401k-limit ... %246%2C500.

Am I correct in these assumptions?

Now the bonus question, what if I also had a side hustle that generated say 20K in profit after expenses as a sole proprietor, could all of that $20K be directed to a Self-Employed IRA in addition to the above and still remain within IRS thresholds?

Total compensation 214,900
Total deductions: $91,900

AGI: $123,000

Thank you!

Statistics: Posted by jamesonmatthew — Wed Mar 13, 2024 10:51 am — Replies 0 — Views 22



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