Can I max out my 401(k) at work and in addition max out a traditional IRA?

Answer 1

The answer depends on your personal income on whether it is taxable.or not taxable. The threshold is lower if you qualify to participate in a 401K or work pension plan. You can still make tax deductible contributions up to $50,000-$60,000 if you are single filer or $80,000-$100,000 if filing as a married person. If you are over the limit, the wiser move would be to contribute to the Roth IRA where it is not tax deductible to contribute but grows tax free and can be withdrawn tax free, too. However, if you are changing employers, it is wise to roll over your existing 401K to an IRA or to the new employer's 401K plan to make it easier to track the money. I recommend before making a financial move to talk to your accountant or financial advisor. I have included some readings on the issue.

Answer 2

I would recommend contributing enough to get teh 401K company match, then max out a ROTH IRA (much better long term than an IRA, the contribution limit is $4,000 for 2007) and then contributing whatever additional amount you can afford to save in your 401K.

Answer 3

sure can...but look at doing a roth IRA....I prefer them myself... check with your local credit union or company credit union...if you are a member of a credit union they usually have investment representatives that do no cost and no obligation analysis of your savings and retirement plan. plus you can look into there IRA options. Credit unions can get you the same things a place like Smith Barney or Edward Jones can and do it for less