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| SwashBuckler |
 Posted: Tue Sep 25, 2007 2:11 pm Post subject: Can you contribute to an IRA even if you have a 401k |
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Investing Sr. Associate
Joined: 13 Aug 2006
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with your current employer?
Correct me if i'm wrong but I believe that you can only contribute to a Roth IRA and not a Traditional IRA? Also if you are going to contribute the mnax of $4000 to an IRA, the max you can put in your 401k would be $11,500 such that the total for all your retirement accounts would be $15,500 (the max one can contribute for 2007).
The investments in my 401k plan with my current employer sucks. I have negative rate of return for the past couple of months and even with the recovery this week, i'm only up over 1%. That is pathetic! However, this was because that a large percentage of my investment is on real estate since 4 years ago. I have stopped contributing to that fund last 3 months. I plan to open an IRA account with Zecco to invest on ETFs instead which provides me more choices and flexibility with my investments. |
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| Dave Rathbun |
| Posted: Tue Sep 25, 2007 2:39 pm Post subject: |
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CFO
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| As far as I know, the two are independent. I contribute the max to both an IRA and to my 401K. |
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| efflandt |
| Posted: Wed Sep 26, 2007 4:23 pm Post subject: |
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Investing Manager
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Like the other Dave says, 401k, 403b, and similar employer plan limits are under one limit, and the sum total of any or all IRA's (traditional or Roth) are under a completely separate limit.
Roth contributions are taxed, but qualified gains are not.
If you are eligible for an employer plan (whether contributing or not) your "deductable" contributions to a traditional IRA may vary from limited to none. However, you may still be able to make non-deductable contributions to a regular IRA if your income is too high for a Roth. In 2010 anyone of any income will be able to convert IRA assets to Roth IRA and pay tax for the conversion during 2011 and 2012.
Anyone can make non-deductable contributions to a traditional IRA, but that would be foolish if eligible to contribute to a Roth IRA. |
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| dishcrew |
| Posted: Mon Oct 15, 2007 4:33 pm Post subject: What about putting the rest into a College Saving Plan? |
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Investing Associate
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If you are maxed out to your contribution to your IRA/401K, then what about putting the rest into a College Saving Plan for your child?
(I heard this from Suze Orman) |
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| Colli |
| Posted: Tue Nov 20, 2007 3:59 pm Post subject: |
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Investing Sr. Associate
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| Dave Rathburn is correct. You may contribute the max to both an IRA and 401k. You may contribute to either a Traditional IRA or a Roth IRA - it makes no difference. There are restrictions on contribution limits based on earnings and age for bot types of IRA's and there are also limits on the 401k contributions. All of these limits are available for your review on the internet. |
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| Staggs |
| Posted: Wed Mar 19, 2008 3:46 pm Post subject: |
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Investing Sr. Associate
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