Finance & Investment Tips : Can I Contribute to a 401k & a Traditional IRA?

Updated : Sep 05, 2019 in Articles

Finance & Investment Tips : Can I Contribute to a 401k & a Traditional IRA?


This is financial advisor Patrick Munro answering
the question can you contribute to a 401K and a traditional IRA? The answer is no, you
have to contribute to one or the other. Not both at the same time. Normally it’s done
in the following order. An individual would work for a company for a period of time and
at work, they are contributing to a 401K. Sometimes their employer will match that contribution,
it’s a great value to the employee. Once they leave the employment of that individual they
will tend to roll it over to a traditional IRA. Well both of those plans are qualified
and taxed deferred but they are truly different in that sense. And therefore an individual
can only contribute to one or the other. Very key. This is Patrick Munro answering the question
can I contribute to a 401K and a traditional IRA?

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