Does the IRS allow to invest in a 401K Plan and also a Roth IRA account at the same time?

I just signed up for a 401K Plan with my company and am also considering investing in a Roth IRA Account. My question is, does the IRS allow simultaneous investments in the 401K & Roth IRA? My filing status would be married filing jointly. Thanks.

Yes, as long as your modified AGI is less than $156,000. At that point, phaseout limitations occur.

You can contribute $4000 ($5000 if you are 50 or older in 2007).

Absolutely! The only IRS issue is the maximum you can invest in a 401k and the maximum you can invest in an IRA....but you can do BOTH (we did, as known by our Smith Barney financial advisor!)

Yes you are allow to invest in both the without any problems.

Rky

Yes. You would be very smart to contribute to both.

yes, but there is an annual cap on how much you can put into your Roth IRA. If you go to http://www.bankrate.com/brm/itax/tips/20...
there is a list of IRA rules.

Yes, that is allowable. There will be no problem at all.

You can invest in a Roth-IRA, IRA, and 401(k)/403(b)

Depending on your income level will depend on the amount you can invest in each one.

I hope so b/c I have both and contribute to both.