Comments on: Can You Have a 401k and an IRA at the Same Time? http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/ because money doesn't grow on trees Thu, 09 Feb 2012 14:28:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Madison http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-86543 Madison Mon, 16 May 2011 18:34:20 +0000 http://www.mydollarplan.com/?p=1172#comment-86543 DC, Non deductible IRA's are still tax deferred, so there are still tax benefits (and some people use them in the past as a <a href="http://www.mydollarplan.com/roth-ira-conversion-strategy-to-avoid-taxes/" rel="nofollow">Roth IRA Conversion Strategy to Avoid Taxes</a>). Roth IRAs are non deductible, but they are tax free when you withdraw the earnings at retirement, so you will get tax benefits. Here's our <a href="http://www.mydollarplan.com/best-online-discount-broker/" rel="nofollow">online discount broker comparison</a> to help you find the best place to open a Roth IRA. DC,
Non deductible IRA’s are still tax deferred, so there are still tax benefits (and some people use them in the past as a Roth IRA Conversion Strategy to Avoid Taxes).

Roth IRAs are non deductible, but they are tax free when you withdraw the earnings at retirement, so you will get tax benefits.

Here’s our online discount broker comparison to help you find the best place to open a Roth IRA.

]]> By: DC http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-86390 DC Sat, 14 May 2011 04:31:16 +0000 http://www.mydollarplan.com/?p=1172#comment-86390 Will Roth IRA work? Looks like i can invest 5000 in Roth IRA. Oh but those are not deductible also! Will i get tax-deferred benefits if i invest in mutual funds and reinvest the returns (dividends and capital gains)? Will Roth IRA work? Looks like i can invest 5000 in Roth IRA. Oh but those are not deductible also! Will i get tax-deferred benefits if i invest in mutual funds and reinvest the returns (dividends and capital gains)?

]]> By: DC http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-86387 DC Sat, 14 May 2011 03:45:31 +0000 http://www.mydollarplan.com/?p=1172#comment-86387 Why do you say "Traditional IRA contributions do not have income limits,"? Married filing jointly with AGI >= $109,000 cannot get any deduction. Then what's the point of Traditional IRA? But i am looking for following information: i file jointly. income > 109,000. I want to invest in mutual funds and get tax benefits. I was thinking of opening Traditional IRA and investing and reinvesting MF returns back to same account. But looks like i won't get benefits right? contribution $5000 is not deductible. Will I get tax benefits for reinvested dividends and capital gains? Why do you say “Traditional IRA contributions do not have income limits,”? Married filing jointly with AGI >= $109,000 cannot get any deduction. Then what’s the point of Traditional IRA?
But i am looking for following information: i file jointly. income > 109,000. I want to invest in mutual funds and get tax benefits. I was thinking of opening Traditional IRA and investing and reinvesting MF returns back to same account. But looks like i won’t get benefits right? contribution $5000 is not deductible. Will I get tax benefits for reinvested dividends and capital gains?

]]> By: Jack http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-80543 Jack Thu, 17 Mar 2011 16:35:02 +0000 http://www.mydollarplan.com/?p=1172#comment-80543 Can I contribute to traditional IRA for 2010? I am W-2 employed, participated in 401(k) for 2010 but there's no employer's matching. I am married; filing joint. My spouse has no income for the year 2010. If yes - I can make contribution to traditional IRA for last year; can I get tax deduction? And, if yes - what are the limits? Can you please explain - that would be very helpful. Thanks! J Can I contribute to traditional IRA for 2010? I am W-2 employed, participated in 401(k) for 2010 but there’s no employer’s matching. I am married; filing joint. My spouse has no income for the year 2010. If yes – I can make contribution to traditional IRA for last year; can I get tax deduction? And, if yes – what are the limits? Can you please explain – that would be very helpful.

Thanks! J

]]> By: Jack http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-80542 Jack Thu, 17 Mar 2011 16:30:32 +0000 http://www.mydollarplan.com/?p=1172#comment-80542 I have a question that I don't think was already covered by others. I am on W-2, have participated in 401(k) for 2010 but there's no employer's matching for my 401(k), just soleley did for tax deductions. I am married and under 50 & filing joint. My wife has no income. Can I contribute to IRA for 2010? And if yes, how much. I have a question that I don’t think was already covered by others.

I am on W-2, have participated in 401(k) for 2010 but there’s no employer’s matching for my 401(k), just soleley did for tax deductions.

I am married and under 50 & filing joint. My wife has no income. Can I contribute to IRA for 2010? And if yes, how much.

]]> By: Emily http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-80251 Emily Tue, 15 Mar 2011 18:09:25 +0000 http://www.mydollarplan.com/?p=1172#comment-80251 This article has been very helpful. I am interested in doing Step 3 specifically, but have concenrs. If I contributed $5k to the IRA and after the 60 day holdover period, it's worth $5,500 (hypothetically speaking!) and I convert it to my Roth IRA, will my income for the tax year increase by $5.5k or $500? Inuitively, I would say only the $500 since you've already contributed $5k of after-tax money. Will my wirehouse distribution form delineate this at year end? If not, is there a box on the 1040 tax forms that delineates it? This article has been very helpful. I am interested in doing Step 3 specifically, but have concenrs. If I contributed $5k to the IRA and after the 60 day holdover period, it’s worth $5,500 (hypothetically speaking!) and I convert it to my Roth IRA, will my income for the tax year increase by $5.5k or $500? Inuitively, I would say only the $500 since you’ve already contributed $5k of after-tax money. Will my wirehouse distribution form delineate this at year end? If not, is there a box on the 1040 tax forms that delineates it?

]]> By: Eric http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-45586 Eric Wed, 22 Dec 2010 21:36:39 +0000 http://www.mydollarplan.com/?p=1172#comment-45586 Hi Donna, Yes, it is, However, the deposits will be slightly different. With your 401k the deposits are taken straight from your paycheck and your taxable income is reduced right there. For IRA contributions, you will make the deposit from your after-tax income, and then you get your money back during tax time. There are ways to reduce your withholdings to balance it out, but it is best to talk to a tax professional if you want to do that. Hi Donna,

Yes, it is, However, the deposits will be slightly different. With your 401k the deposits are taken straight from your paycheck and your taxable income is reduced right there. For IRA contributions, you will make the deposit from your after-tax income, and then you get your money back during tax time.

There are ways to reduce your withholdings to balance it out, but it is best to talk to a tax professional if you want to do that.

]]> By: Donna http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-44519 Donna Wed, 22 Dec 2010 13:24:08 +0000 http://www.mydollarplan.com/?p=1172#comment-44519 I had a 401K at work and was layed off at the end of March. If I fund a traditional IRA is the contribution tax decutible? I had a 401K at work and was layed off at the end of March. If I fund a traditional IRA is the contribution tax decutible?

]]> By: Fred http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-19748 Fred Tue, 19 Oct 2010 10:13:37 +0000 http://www.mydollarplan.com/?p=1172#comment-19748 Joshua, You can contribute to both types if you chose to, but the grand total of both can total no more than 5,000 if you are younger than 50. Once you hit the ripe age of 50 you can contribute an additional 1,000 each year. If you don't have a 401k with your work, I would suggest opening up a simple online brokerage account and investing the money that you would be putting into the 401k into it. Joshua,

You can contribute to both types if you chose to, but the grand total of both can total no more than 5,000 if you are younger than 50. Once you hit the ripe age of 50 you can contribute an additional 1,000 each year.
If you don’t have a 401k with your work, I would suggest opening up a simple online brokerage account and investing the money that you would be putting into the 401k into it.

]]> By: Joshua http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-12686 Joshua Mon, 28 Jun 2010 15:22:45 +0000 http://www.mydollarplan.com/?p=1172#comment-12686 have a question - hope its not too late. i dont have 401K at work. can i open traditional ira and also roth ira and contribute 5000 to each totaling 10,000? (assume i am within income limits and 2011 limits are same as 2010 which are 5000 in IRA)? please advise. have a question – hope its not too late. i dont have 401K at work. can i open traditional ira and also roth ira and contribute 5000 to each totaling 10,000? (assume i am within income limits and 2011 limits are same as 2010 which are 5000 in IRA)? please advise.

]]> By: 401(K) Roundup, April 2010. | After Hours Investing http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-11150 401(K) Roundup, April 2010. | After Hours Investing Tue, 27 Apr 2010 17:35:36 +0000 http://www.mydollarplan.com/?p=1172#comment-11150 [...] Can You Have a 401k and an IRA at the Same Time? is the question Madison answers at My Dollar Plan: A few people that I’ve talked to recently thought that because they had a 401k at work, they couldn’t open an IRA. Not true! Let’s take a closer look at investing in both an IRA and a 401k at the same time. [...]

[...] Can You Have a 401k and an IRA at the Same Time? is the question Madison answers at My Dollar Plan: A few people that I’ve talked to recently thought that because they had a 401k at work, they couldn’t open an IRA. Not true! Let’s take a closer look at investing in both an IRA and a 401k at the same time. [...]

]]> By: Dean Voelker http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-11027 Dean Voelker Thu, 22 Apr 2010 01:48:08 +0000 http://www.mydollarplan.com/?p=1172#comment-11027 I am actually a financial advisor. It may be helpful to contact an advisor, although if you are just getting started, I'd stick with about 3 funds. You want ones that do different things - a large company fun which pays dividends, a medium sized company fund, and a small company fund or an international one. I am actually a financial advisor. It may be helpful to contact an advisor, although if you are just getting started, I’d stick with about 3 funds. You want ones that do different things – a large company fun which pays dividends, a medium sized company fund, and a small company fund or an international one.

]]> By: Eric http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-11026 Eric Thu, 22 Apr 2010 00:27:11 +0000 http://www.mydollarplan.com/?p=1172#comment-11026 It comes with time, and reading things like this blog. :) The best advice for now would be to spread your investments over three or four stock-based mutual funds. Go for growth funds if you can. As you learn more you will find your style. Whatever you do, DONT PANIC when the market goes down. It will come back. And if you pulled out, you will miss the gains. My advice, dont watch the market everyday. It comes with time, and reading things like this blog. :)

The best advice for now would be to spread your investments over three or four stock-based mutual funds. Go for growth funds if you can. As you learn more you will find your style.

Whatever you do, DONT PANIC when the market goes down. It will come back. And if you pulled out, you will miss the gains.

My advice, dont watch the market everyday.

]]> By: Fashion Without Guilt http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-11025 Fashion Without Guilt Wed, 21 Apr 2010 23:37:59 +0000 http://www.mydollarplan.com/?p=1172#comment-11025 Thank you again Eric for your response. But once you started your 401k how did you understand the stocks and how the market is doing and what is happening with you money? Where did you learn from? Thank you again Eric for your response. But once you started your 401k how did you understand the stocks and how the market is doing and what is happening with you money? Where did you learn from?

]]> By: Fashion Without Guilt http://www.mydollarplan.com/can-you-have-a-401k-and-an-ira-at-the-same-time/#comment-11024 Fashion Without Guilt Wed, 21 Apr 2010 23:35:35 +0000 http://www.mydollarplan.com/?p=1172#comment-11024 Thank you so much Dean. I am going to start my 401k next week. But everyone says start a 401k but how do you understand the stocks and where you money is going? How did you find out yourself? Did you read books or just feel your way through? Thank you so much Dean. I am going to start my 401k next week. But everyone says start a 401k but how do you understand the stocks and where you money is going? How did you find out yourself? Did you read books or just feel your way through?

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