Comments on: 401(k) or IRA? Where Should You Put Your Money? http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx An Offbeat Look at what Makes the World Go Round Sat, 13 Mar 2010 20:11:41 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Roselyn http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx/comment-page-1#comment-1868 Roselyn Thu, 04 Jun 2009 19:53:55 +0000 http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx#comment-1868 I am on track to contribute the maximum in my 401K for this year. Can I still open a Roth IRA and contribute the max allowed which I believe is 5000 for this year-2009? I am on track to contribute the maximum in my 401K for this year. Can I still open a Roth IRA and contribute the max allowed which I believe is 5000 for this year-2009?

]]> By: Art Dinkin http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx/comment-page-1#comment-476 Art Dinkin Wed, 15 Aug 2007 11:42:56 +0000 http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx#comment-476 I agree Jason (and by the way, everybody calls me Art), most people would want to choose the best strategy for them and max it out. The only time I know when people would want both is if they qualified for a limited deductable traditional IRA. That is, their income was such that they were limited to a $2,000 deduction in their traditional IRA so they remaining $2000 would go into their Roth. But of course that would be a very specific (and very rare) situtation. Of course, most people would probably go with the Roth over the Traditional anyway. I agree Jason (and by the way, everybody calls me Art), most people would want to choose the best strategy for them and max it out. The only time I know when people would want both is if they qualified for a limited deductable traditional IRA. That is, their income was such that they were limited to a $2,000 deduction in their traditional IRA so they remaining $2000 would go into their Roth. But of course that would be a very specific (and very rare) situtation. Of course, most people would probably go with the Roth over the Traditional anyway.

]]> By: Jason Dean http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx/comment-page-1#comment-433 Jason Dean Thu, 02 Aug 2007 19:25:50 +0000 http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx#comment-433 Mr. Dinkin: That is 100% correct, and thank you for making that point. When I said you "can't combine" I was thinking very narrowly, i.e. combining a $4,000 traditional IRA with a $4,000 Roth IRA. You could, obviously or not-so obviously, contribute $2,000 to each in a given year, and perhaps there is a strategy for doing so that I do not immediately appreciate. For the most part, however, I would think that an individual would want to choose one of the two that were most beneficial and max them out, and would only "combine" the two if he/she were allowed to do so <b>in addition</b> to a maximum contribution towards his/her favorite of the two. Mr. Dinkin: That is 100% correct, and thank you for making that point. When I said you “can’t combine” I was thinking very narrowly, i.e. combining a $4,000 traditional IRA with a $4,000 Roth IRA. You could, obviously or not-so obviously, contribute $2,000 to each in a given year, and perhaps there is a strategy for doing so that I do not immediately appreciate. For the most part, however, I would think that an individual would want to choose one of the two that were most beneficial and max them out, and would only “combine” the two if he/she were allowed to do so in addition to a maximum contribution towards his/her favorite of the two.

]]> By: Art Dinkin http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx/comment-page-1#comment-432 Art Dinkin Thu, 02 Aug 2007 18:24:06 +0000 http://www.smartmoneydaily.com/retirement/401k-or-ira-where-should-you-put-your-money.aspx#comment-432 Jason, Good post. Not to be nit-picking, but you CAN combine accounts in combinations other than 401(k) and Roth IRA - subject to certain limitations. For example, if your earnings are low enough, you can contribute to a traditioanl IRA as well as a Roth IRA, but the total in both can not exceed $4000 (or $5000 if you are 50 years old or older). You also COULD have a 401(k) and traditional IRA. I am not sure why anyone would want a combination of anything other than 401(k) and Roth IRA, but they could be legal. Jason,

Good post. Not to be nit-picking, but you CAN combine accounts in combinations other than 401(k) and Roth IRA – subject to certain limitations.

For example, if your earnings are low enough, you can contribute to a traditioanl IRA as well as a Roth IRA, but the total in both can not exceed $4000 (or $5000 if you are 50 years old or older). You also COULD have a 401(k) and traditional IRA.

I am not sure why anyone would want a combination of anything other than 401(k) and Roth IRA, but they could be legal.

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