Can I put money in both 401k & Roth IRA?

Answer 1

Yes.

401k is employer sponsored retirement plan and Roth IRA is personal retirement account. So both are totally independent of of each other.

Answer 2

Yes. Roth IRAs were created to allow people with pre-tax retirement plans the opportunity to put more money away. A 401K is an employer sponsored retirement plan that allows the employee to put away money earned, before it is taxed. Sometimes the employer also contributes to the plan. Make sure you know what investments your 401K uses and whether or not you can choose how the money is invested.

A Roth IRA allows you to put away money that you have already been taxed on and allow it to grow tax free. The investor can invest in many different instruments.

When you withdraw the money (presumably at retirement) the money is taxed as income, usually at a lower rate (you are old and making less money).The difference is that with a 401K all money is taxed when withdrawn. In a Roth only the profit is taxed because you have already been taxed on the principle or the money you put into it.

And generally speaking if the money is taken out before retirement it is taxed and penalized as stated above.

Answer 3

You can contribute to a Roth IRA as long as your adjusted gross income (AGI) isn't above a certain limit. For singles, your AGI must not be above $114k. For married couple filing jointly, AGI must not be above $166k. If filing separately, AGI must not be above $10,000.

Having a 401(k) at work or not having one does not matter. It only matters to Traditional IRAs and you are trying to figure out whether your contributions are tax-deductible. In Roth IRAs, no contributions are tax-deductible. If you are not worry about making tax-deductions, then you can have both a Roth IRA and a Traditional IRA (though I prefer just having a Roth instead).

Answer 4

YEs, you can put up to $15k a year into 401k I think and $4k a year into your roth.

Answer 5

Yes.