Can i contribute to a roth and a 401k

Most of us fall into that group. The ideal amount to save for retirement will vary by your financial situation and your overall goals.

Check out our retirement calculator to measure your progress. If your employer offers a matching contribution in your k plan, get as much of that free money as you can. A lot will depend on the k you have. Some plans offer a good selection of low-cost investments; others, not so much. The beauty of an IRA whether Roth or traditional is that you can open one at just about any discount broker, with no account fees and access to a wide variety of low-cost investments.

Still not sure which account is best for you? IRAs and k plans carry annual savings limits. Is it time to sell? This limit is a total for all Roth and traditional IRAs. Not everyone can save in a Roth IRA. Investors are ineligible if their annual income exceeds a certain level. But just to be clear, here are the biggest reasons the Roth comes out on top.

It may be tempting to delay paying taxes so you can get slightly more in your paycheck now. Do you want to take that risk? You'd much rather pay taxes now than see all that money fly out the door later. No matter how much money you earn, you can contribute to a Roth k. Just keep in mind that income limits do apply when you contribute to a Roth IRA. Investing for the future is easier than you thought!

Diversifying your portfolio is key to maintaining a healthy amount of risk in your retirement savings. Not sure which funds to select based on your Roth k options? Sit down with an investment professional who can help you understand the different types of funds, so you can choose the right mix.

If it makes sense for your situation, a Roth conversion is a great way to take advantage of tax-free growth on your accounts. But keep in mind that rolling over a traditional k means paying taxes on it now. But before you roll over accounts, make sure to sit down with an experienced investment professional. If you want to learn more about your Roth k or other investing options, find an investing pro in your area.

A financial advisor can help you understand your investments and make confident decisions. A do-it-yourself approach to investing is never a good idea. Even the pros work with a financial advisor! Looking for a qualified investing pro? Show More. What is a Roth k? Learn More. Fees 0. Fees Varies by advisor. Promotion None no promotion available at this time.

If your tax rate is low now and you expect it to be higher in retirement. If your tax rate is higher now than you expect it to be in retirement. On a similar note Dive even deeper in Investing. Explore Investing. Get more smart money moves — straight to your inbox. Sign up. NerdWallet rating NerdWallet's ratings are determined by our editorial team.