Lux Investing
If I am already investing in a 401k, can I also put money into an IRA? Looking to shelter some income..?
What are my options? Can I use a traditional IRA, and my 401k? If I missed contributing to my 401k last year, can I still open an IRA for 2007 before Apr 15? I have a feeling there is a single answer that answers all of these questions for someone in the know! Thanks!
Public Comments
- yes you sure can either in the regular or roth or both !!!
- 401K and IRA are two different types of accounts so yes, if you put money into 401K, you can also put money into IRA. You can choose traditional IRA or Roth IRA. Traditional takes your money pre-tax so you get immediate tax benefits for contributing to it, however, you'll be taxed for the money that you take out when you retire. Roth takes your money after tax but when you start taking the funds out after you retire, there are no tax on the withdrawl. So basically anything you earned in the Roth IRA are no taxed.
