Q: Erick, can I contribute to both my workplace retirement plan and an Individual Retirement Account (IRA)?
A: You can contribute to both a workplace retirement plan, such as a 401(k) or 403(b), and an IRA (traditional or Roth), BUT… there are some rules to watch for. If you or your spouse are covered by a workplace plan like a 401(k), your IRA contribution may not be fully tax-deductible depending on your income. Roth IRAs also have income limits. Still, using both accounts can be a smart strategy to boost retirement savings and diversify tax treatment.
Next step: Not sure how this works for you? No problem, book a meeting!
Retirement Partners of California Can Help!
We’ll design an Employee Financial Education Plan to help improve your 401k participant results.
Disclosures, Sources, and Footnotes
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
Kmotion, Inc., 12336 SE Scherrer Street, Happy Valley, OR 97086; www.kmotion.com
©2024 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
RP-273-0525 Tracking #781119
