Post by megalicious on Nov 13, 2012 19:30:33 GMT -5
I have both a Roth 401 and traditional 401 through work, is it worth it to have an IRA too? What are the plusses or minuses? Is it better to keep the bulk of the $$ in one place?
This year, you can only contribute $17,000 to your 401(k). You can also contribute $5000 to an IRA, so the advantage of having an IRA too is that you can set aside $22,000 tax-advantaged dollars instead of only $17,000.
One big advantage of a Roth IRA vs Roth 401k is that a Roth IRA doesn't have the required minimum distributions at 70.5 like the Roth 401k does. If you make it to 70.5 and have a ton of money you can leave it in a tax sheltered account, unlike in the 401k
This year, you can only contribute $17,000 to your 401(k). You can also contribute $5000 to an IRA, so the advantage of having an IRA too is that you can set aside $22,000 tax-advantaged dollars instead of only $17,000.
The IRA contribution limit was increased to $5,500 for 2013.