Maxing out your 401(k) should not directly count against your IRA contribution limit. I may be misunderstanding the question, and I certainly don't have all of the details, so you'll need to triple-check with somebody who knows your circumstances. But I would say the answer is likely yes, you can probably do the backdoor contribution as long as you have eligible earned income. Other people might be unable to contribute to a Roth IRA based on their income, and/or they might be unable to make pre-tax contributions due to their 401(k). But the nondeductible/backdoor strategy can still work while you max out a 401(k).
Thank you so much for this video. It was comprehensive and helped me change my budgeting for the new year. I appreciate it!
Thanks for another excellent video, Justin!
Justin, thank you for the video! Quick question, if I maxed out my pre-tax 401(k), can I also contribute an extra ~$7k via a backdoor Roth IRA?
Maxing out your 401(k) should not directly count against your IRA contribution limit. I may be misunderstanding the question, and I certainly don't have all of the details, so you'll need to triple-check with somebody who knows your circumstances. But I would say the answer is likely yes, you can probably do the backdoor contribution as long as you have eligible earned income.
Other people might be unable to contribute to a Roth IRA based on their income, and/or they might be unable to make pre-tax contributions due to their 401(k). But the nondeductible/backdoor strategy can still work while you max out a 401(k).