- 610
- 130
- Joined
- May 3, 2003
If your employer offers a Roth 401K, try utilizing that instead of the 401K. If not, no big deal. Once your Roth IRA is maxed out, move to the traditional IRA and start contributing to that.
Yo, CRC! i had dreams of doing that too, but i eventually found out this:
"Yes. An individual may make IRA contributions to both a Roth and a Traditional IRA, providing the combined contribution total does not exceed the contribution limit for the year.
Read more: http://www.investopedia.com/ask/answers/03/081503.asp#ixzz2DU9tTumY"
So although you can contribute to both vehicles during the same year, if you max your contribution to one, you can't contribute anything to the other. I'm starting to look in to low fee brokerage accounts to generate additional returns.