Personal Finance & Money Asked on October 1, 2021
Suppose I move to the US partway through the year and start working. I will file a dual-status tax return. My employer offers a 401k plan and I want to contribute as much as I am permitted. I understand the maximum employee contribution for 2021 is $19,500.
Despite not being a tax resident (or any other kind of resident) for the full year, am I allowed to contribute the full $19,500 if I want to? Or does this get reduced based on how many days of the year I am a tax resident of the US?
Likewise for the $6,000 IRA limit?
I think the contribution limits are the same. Both resident aliens and nonresident aliens have the same contribution limit for IRAs -- $6,000 or their taxable compensation, whichever is less (although for nonresident aliens they can only count the compensation that is effectively connected to the US). I think the same is true for 401(k) contributions.
Correct answer by user102008 on October 1, 2021
Get help from others!
Recent Questions
Recent Answers
© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP