Retirement Question - Can you open an IRA and a 401k plan or you can just pick one?

[venom600]

Hi i was wondering if anyone knew if you can open up both a 401k plan and an IRA?

or do you just get to pick one?

TIA

 

[DaveSimmons]

You don't open a 401k youself, you participate in your employer's plan.

If your annual income is (above $3,000 and) below $100K you can contribute $3K to a Roth IRA (not a traditional IRA) in addition to participating in your employer's 401k plan.

Your Roth IRA can be with a bank (CD usually) or brokerage. A good brokerage choice is www.vanguard.com and to invest it in their VFINX fund (S&P 500 stock index fund).

You have until April 15 to set up a Roth IRA for 2003's $3K contribution limit.

See the IRS site, tax sites, fool.com, google, etc. for more detailed explanantion.

 

[Blieb]

what he said