My employer has no type of 401k plan, can you contribute to both an existing traditional IRA and a Roth IRA?

Question

I rolled over an existing 401k into a traditional IRA. My current firm doesn't have a 401k or any other kind of plan. I'd like to contribute to my traditional IRA but I'm being told that I can't contribute to both a traditinal IRA and a Roth IRA at the same time unless the one is from the current employer.

Answer 1

You can have both. See Publication 590, linked below.

DISCLAIMER: I'm not a tax attorney, nor do I play one on TV. I didn't even stay at a Holiday Inn Express. Do not rely on advice from internet message boards!

Answer 2

You can contribute to both a Roth IRA and a traditional IRA. Just remember that the annual IRA contribution limits are per person....not per account.

Answer 3

I think you'll find you can have both the regular IRA and 401k in the same tax year. You can contribute the max to the 401k ($15,500,) and to the IRA ($4000?) but you may not be able to take the full IRA deduction for that year. (Making it a non-deductible IRA.) Sounds like you are a good saver.

Answer 4

You can contribute to both but your total is still the same limit just you can split it between the ROTH and Traditional or rollover IRA.