If I invest in a roth 401K, what are the restrictions to invest in a traditional IRA?

Answer 1

It does not limit your ability to contribute to a Tradional IRA, however as a Qualified Plan it may limit your ability to deduct the contributions to the IRA


See Publication 590 page 13
http://www.irs.gov/pub/irs-pdf/p590.pdf

Answer 2

If you have a Roth 401k you are considered an active participant in an employer sponsored retirement plan. You can still contribute to and deduct your contributions to a traditional IRA if your AGI is below the threshold:

Single or Head of Household : under $50,000
Married: under $75,000

There are phaseout ranges and more details in Pub 590 IRAs.

http://www.irs.gov/pub/irs-pdf/p590.pdf

Answer 3

as others have said you can invest in both. You can invest a total of $4k in an IRA....if you put 3 in the roth then you can put 1k in a traditional IRA. Whether it's deductible or not is dependent upon your income level. You can check out the income phaseouts at www.irs.gov

Answer 4

You can contribute up to $4,000 to an IRA. The amount of the deduction you can get depends on your AGI and filing status. For example, if you're filing "single" and your AGI is under $50,000, you will get a deduction for the full amount of the IRA contribution. If your modified AGI is over $60,000, you will not get a tax deduction and any contribution made will be considered a non-deductible contribution.

See Table 1-2 for other filing status and income limitations
http://www.irs.gov/publications/p590/ch01.html#d0e1814

Answer 5

Do you mean difference in the two? In an Roth 401k the funds are taken out after taxes. Which means that you will not have to pay taxes on them when you retire. This would be good if you believe that by the time you retire the tax rate will be higher. In a traditional 401k the funds are taken out before taxes and you will have to take the taxes out at the end. The decision would involve a lot of factors like how long until retirement, the view of future tax rates, etc.