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What are the contribution limits for my Roth 401(k)?

Roth 401(k) contributions have the same limits as regular 401(k) contributions.

The contribution limits for your Roth 401(k) are the same as the contribution limits for a traditional 401(k), which, in 2016, is $18,000, but these limits are adjusted upwards to account for inflation. If you’re over 50, you can add a catch-up contribution of $6,000 on top of the $18,000 for a total contribution of $24,000.

It is important to note that these figures represent the total contribution which can be made by an employee to either of these vehicles in a given year. A participant under 50 years old who made pretax 401(k) contributions of $12,000 would only be permitted to contribute $6,000 to a Roth 401(k) that year, for a total of $18,000 in possible contributions.

It’s good to know, also, that it is possible to contribute to both a 401(k) and IRA in the same year, but traditional IRA deductions and Roth IRA eligibility get phased out at certain income levels when an individual or the individual’s spouse has a qualified plan at work.

Keywords: taxation, retirement accounts, contribution limits,