Is it possible to have an IRA and a 401K (and even possibly a SEP?)?

Question

Granted, if it is possible I'm sure the answer would be do do both, but that being said is it legal to do so? I currently have a IRA and am looking to join a company which has a 401k program, if I do join the company can I continue making contributions to my IRA as well as the 401k?

On a side point I currently have a small side business which potentially could add up to something worthwhile (not Bill Gates successfull or anything remotely close). If the side business takes off, can I put the proceeds into something similar for the self employed, even though it's not my primary source of income? If not other thoughts would be welcome.

Thanks in advance.

Answer 1

I sure hope so!

I have a 401(k) with my current employer, an IRA with a former employer's 401(k) funds in it, a SEP with my personal business, and a number of Roths...

Check out "Retirement plans" at http://www.fool.com that should help clarify!

Good luck...

Answer 2

There are many options but you should consult a financial professional as there are many variables. First, you have and IRA and even if you join a company with a 401k, it certainly is legal to keep your IRA. It is also legal to have both and contribute to both however the contribution to your IRA probably will not be tax deductible against your annual income. Possibly you might consider instead of a Traditional IRA, a discussion with your Financial Professional, the benefits of a Roth IRA.

Your small business you could set up a SEP IRA or even a SIMPLE plan and contribute to your 401K if you join the new company, contribute to an IRA or maybe a ROTH and your contribute to an employer sponsored plan with your small side business.

It is all about saving. Good Luck!

Answer 3

Yes, you can have a 401K and a Roth IRA (or even a traditional IRA).
I have both.

Answer 4

yes it is very possible.