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Can you have a Roth IRA and a 401(k)?

You can have both a Roth IRA and a 401 (k) — or another type of employer-sponsored plan such as a Simplified Employee Pension (SEP) or Savings Incentive Match Plan for Employees (SIMPLE) IRA, depending on what your employer offers — but each account has its own annual contribution limit.

Can I contribute to a Roth IRA and a 401(k) at the same time?

You can contribute to a Roth IRA (a type of individual retirement plan) and a 401 (k) (a workplace retirement plan) at the same time. Anyone eligible can contribute to an employer's 401 (k), but income limits apply to Roth IRAs.

Is a Roth IRA better than a 401(k)?

A Roth IRA offers greater flexibility than most retirement accounts. If your employer offers a 401 (k) plan, there may still be room in your retirement savings for a Roth IRA. Yes, you can contribute to both a 401 (k) and a Roth IRA, but there are certain limitations you'll have to consider.

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