IRA/401K

CillaN

Can you have IRA and 401K at the same time?  I know they're similar, but can you though?  Any advise will be much appreciated.

hrmickid

CillaN- Yes, your employees can contribute to an IRA and 401k at the same time.  I, personally, am contributing to both (to maximize retirement savings).  You can combine Roth IRA w/ 401k or Traditional IRA w/ 401k. 

Here are some links that might be helpful:

http://www.daveramsey.com/etc/askdave/?intContentId=6323

http://taxes.about.com/b/a/252302.htm

 

Kibitzer

There's another thing to remember in the case of traditional IRAs. An individual who is a 401(k) participant may not be able to make a deductable contribution to a traditional IRA depending on income. For 2007, the deductablility of IRA contributions phases out at income in the range of $80,000 - $100,000 for married couples and in the range of $50,000 - $60,000 for single individuals. Married indiviudals filing seperate income tax returns are barred from deducting IRA contributions.