IRA Accounts - 401K plus individual IRA

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Atherton
Posts: 1
Joined: Sun Apr 22, 2018 10:24 am

IRA Accounts - 401K plus individual IRA

Post by Atherton » Sun Apr 22, 2018 10:46 am

I have a corporate 401-K IRA pension account that is invested in a Roth to the maximum allowable annual amount for 2018.
Since the 401-K is considered a corporate pension account can I also open my own additional individual 2018 Roth or Standard account with say Vanguard or any other fund?

User avatar
ruralavalon
Posts: 13509
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: IRA ACCOUNTS - 401K plus individual IRA

Post by ruralavalon » Sun Apr 22, 2018 11:26 am

Welcome to the forum :) .
Atherton wrote:
Sun Apr 22, 2018 10:46 am
I have a corporate 401-K IRA pension account that is invested in a Roth to the maximum allowable annual amount for 2018.
Since the 401-K is considered a corporate pension account can I also open my own additional individual 2018 Roth or Standard account with say Vanguard or any other fund?
A 401k is not an IRA, and is not a pension.

Yes, depending on your income you can open an IRA at Vanguard or elsewhere in addition to your 401k account.

There are income limits for contributions to a Roth IRA, and for the deductibility of contributions to a traditional IRA.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

PFInterest
Posts: 1714
Joined: Sun Jan 08, 2017 12:25 pm

Re: IRA ACCOUNTS - 401K plus individual IRA

Post by PFInterest » Sun Apr 22, 2018 11:38 am

Atherton wrote:
Sun Apr 22, 2018 10:46 am
I have a corporate 401-K IRA pension account that is invested in a Roth to the maximum allowable annual amount for 2018.
Since the 401-K is considered a corporate pension account can I also open my own additional individual 2018 Roth or Standard account with say Vanguard or any other fund?
you can have both a 401k and an IRA. you need to determine if you are eligible based on income restrictions.
another question is whether a roth 401k is the better choice or not.

retiredjg
Posts: 33262
Joined: Thu Jan 10, 2008 12:56 pm

Re: IRA ACCOUNTS - 401K plus individual IRA

Post by retiredjg » Sun Apr 22, 2018 1:43 pm

Your 401k (or a pension if you have one) does not affect your ability to contribute to traditional IRA or to Roth IRA.

Your income will determine if your contribution to tIRA is deductible or not deductible. If you are over 70.5, you cannot contribute to tIRA.

Your income will determine if you are eligible to contribute directly to Roth IRA.

manedark
Posts: 242
Joined: Sun Apr 22, 2018 2:05 pm

Re: IRA ACCOUNTS - 401K plus individual IRA

Post by manedark » Sun Apr 22, 2018 4:18 pm

I have a similar question around 401K and Roth IRA.
I still haven't maxed out my 401K, should I do that (with limited fund choicesland use Roth 401K option or create an independent Roth IRA till I can i.e MAGI below 196K.

Thanks!

User avatar
LadyGeek
Site Admin
Posts: 46837
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: IRA Accounts - 401K plus individual IRA

Post by LadyGeek » Sun Apr 22, 2018 4:27 pm

manedark has a detailed question in his thread here: Max out 401K with Empower or open a separate IRA (non-resident alien living in the US)

Please answer manedark's question in that thread. This discussion is to help Atherton.

Atherton and manedark, Welcome!
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

manedark
Posts: 242
Joined: Sun Apr 22, 2018 2:05 pm

Re: IRA Accounts - 401K plus individual IRA

Post by manedark » Sun Apr 22, 2018 5:57 pm

Sorry about that. I thought I could tag in as question was similar. Thanks for tagging my thread.

Post Reply