david and brittany are still within the guidelines for a married couple (based on 2020 contribution of $6000 per individual). After maxing out the IRA, thry will fund the 401(k).

Answer 1

Assuming the question is asking how David and Brittany should allocate their retirement contributions for 2020:

For 2020, the IRA contribution limit for an individual under age 50 was $6,000. Therefore, if both David and Brittany are eligible to make the full contribution, they could contribute:

David: $6,000

Brittany: $6,000

Total IRA contributions:

$6,000 + $6,000 = $12,000

After contributing the maximum amount to their IRAs, they can direct additional retirement savings to their 401(k) plans, subject to the applicable 401(k) contribution limits.

The 2020 employee contribution limit for a 401(k) was $19,500 per individual under age 50.

Therefore, the basic strategy described is:

First: Fund IRAs up to $12,000 total ($6,000 each).

Second: Put additional retirement savings into the 401(k), up to the applicable contribution limits.

Note that IRA deductibility and Roth IRA eligibility can also depend on the couple's income and whether either spouse participates in an employer-sponsored retirement plan.