Friday, January 28, 2022

Can I contribute to a 401k and an IRA?

Short answer: No because my 401k contributions are high enough that it wipes out any headroom for tax-deductable IRA contributions. Slightly longer answer but you can still do Roth (pfft!). Some links:
This is a basic regurgitation of the rules, which admittedly are complex enough to require a review. https://www.personalcapital.com/blog/retirement-planning/can-contribute-401k-ira/
This article explains a little bit better what's hinted in the first article, namely that you can contribute to a traditional IRA up to the limit, just won't get the tax deduction, and that you have more personal freedom to chose the investments with IRAs. Also give some examples that point out when being in a lower tax bracket helps on either end.https://www.investopedia.com/ask/answers/07/401(k)_ira.asp