2006-09-12 13:04:01 · 7 answers · asked by Brent J 1 in Business & Finance ➔ Investing
You can have an IRA and a 401K. The deduction for the IRA is going to depend on if you have a qualified 401k through your employer. If so, then you can contribute only after tax dollars in a traditional IRA. If you quit your job, you can then roll the 401k into your existing traditional IRA.
If you are participating in a company 401k, which you should be, you can look into a Roth IRA. You will be qualified if you earn less than 160K per year (married, filing joint). Roth IRA's are funded with after tax dollars and are not taxed at all upon withdrawl at retirement. This is a good way to go. The limits are 4K per year (I think).
2006-09-12 13:08:49 · answer #1 · answered by Mr. Knowitall 3 · 1⤊ 0⤋
Yes, as long as you earn an income and following the IRS guideline limit
in 2006, the limit for 401k is 15k
for IRA is 4000
2006-09-13 00:11:38 · answer #2 · answered by Hoa N 6 · 0⤊ 0⤋
Yes - 401K is through employment and tax deferred and IRA can be set up any time is not tax deferred but there is a limit on how much money you can put in it a year depending on your age.
2006-09-12 20:06:38 · answer #3 · answered by freemansfox 4 · 0⤊ 0⤋
Yes
2006-09-12 20:06:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, contribution limits are set for each and do not count towards one another.
2006-09-12 20:05:44 · answer #5 · answered by Tim 1 · 0⤊ 0⤋
yes, there will be a limit on how much you can add to your IRA based on how much you put into your 401K......
2006-09-12 20:05:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋
definitely.
2006-09-13 09:25:52 · answer #7 · answered by MCNY 1 · 0⤊ 0⤋