Retirment accounts?

Hi,

I have enrolled in 401k. I came know that I cannot sign up for traditional IRA since I have enrolled in 401k and making investment. Only option I have roth ira?

also 401k is taxable when i take money after 59 1/2 age?

having a 401k does not stop you from having an ira....what can stop you is the amount of money you make a year. If you make around 150k a year or something like that you can't invest in a roth ira

but you can still invest in a traditional ira, the issue is will it be tax deductable on your taxes each year, even if it isn't tax deductable, you can still do it because one of the main benefits to any retirement account is the tax free build up over time. you should go and talk to an accountant to see where you stand.

Your best option is just to save money in a regular account. True its not tax deductible nor are the earning tax free but you may need the money sooner anyhow. Start saving money more money now and you will have fewer worries later.

you can have a 401k, Roth IRA and an IRA all at the same time. I would recommend if you want another retirement account to get a Roth, because it is tax free when you withdraw.

Any retirement fund is taxable when you take the money out. It is just deferred until then. I know you can roll your accounts sometimes from one type to another. You should discuss this with whoever holds the account - the bank, credit union, whatever. Be carefull of the investment accounts unless you really know what you are doing as you can loose/not make as much as possible. Check out some of the county, or municipal CD's as they are not taxable on the county/city tax at all and offer great rates. They aren't a retirement account but if you keep rolling them into another like CD over the years they can really add up. So think about diversifying some of your retirement money.

You are wrong. You can have a traditional IRA as well as your 401K.
If the money in your 401K is pre taxed money, you will be taxed on what you take out of it.

You can have a traditional IRA or a Roth IRA along with your 401(k) plan with your employer. The only question is whether your traditional IRA contribution would be deductible or non-deductible. This would depend on your tax filing status and your actual adjusted gross income during the tax year. Check with your accountant on that.

And you can have a 401(k) and a Roth IRA also (assuming you don't exceed contribution limits imposed on Roths as well depending on your income.) In most cases, you're better off doing the Roth than a traditional IRA because all growth in the Roth is tax-FREE and is tax free when you take it out for retirement after age 59 1/2. (The traditional IRA withdrawals WOULD be taxable -- every penny of it -- when you withdraw it._

The 401(k) is also taxable after age 59 1/2 when you start making withdrawals. But of course, you still want to use it because (a) the employer is usually GIVING you money to add to it via the company match and (b) the tax-deferred growth is a great thing now. If you're going to add a second weapon to attack retirement savings, though, I'd pick the Roth IRA.

Good luck!

You can have both an IRA and a 401k. The only limitation would be your income. Check the IRS's website (www.irs.gov) to make sure your income level is under the threshold.

Otherwise, for 2007 you can invest up to $15,500 in your 401k and $4,000 in your IRA (Roth or Traditional).