Can I have a 401K and a traditional IRA?
114442
Yes, see a tax adviser on your contribution limits however and to see if a Roth may be right for you.  Also, if your company offers a match, make sure you contribute up to the match limit before contributing to an IRA, otherwise you're leaving money on the table.  When you leave your company, roll the money into an IRA.  Expenses are lower in IRA's than 401(k)'s.  A lot of people like to keep their assets together, but since fees eat a huge portion of your returns, I strongly suggest rolling to an IRA rather than your new company's plan.  Plus, that way you're not limited to whatever investment offerings are in the 401(k), you can choose to invest with whomever you'd like.\n\nGood luck!
151555
The IRA CD grows tax-deferred or tax-free (if a ROTH) until the IRA is closed out (usually at retirement age 59 1/2 yrs+). The conventional CD is in a taxable account, so earnings/interest are taxable each year.  Both CD's are investments, however they are sitting in different kinds of accounts which dictate when taxes will be paid.
100055
Yes you can. Check out Equity Trust Company on the web. The ability to shield capital gains from taxes by using your IRA is an incredibly powerful tool.\n\nwww.trustetc.com
759874
That doesn't really change the net income that is taxable, as your withholdings are not your actual TAX. It is the state taxes that make a difference.\n\nSome other ideas - open a traditional IRA (a Roth won't do it).  There's no income limit on a traditional IRA and if you are married you can fund one for your spouse, even if they are not earning income (ie a stay at home mom).  For 2006 and 2007, you can fund up to $4000 a piece (in separate accounts, one for each of you) if you are 49 or younger, and up to $5000 each if you are 50 or older.\n\nThat directly reduces your taxable income.   Hopefully you're maxing your contribution to your employer's 401K, which is another great way to reduce your taxable income, while still retaining that money for your own use.  If you have a FSA or MSA, (Flexible Spending Account or Medical Spending Account) at work, you might also review your withholdings for next year to prevent this problem next year.\n\nYou can also donate appreciated stock or bonds to charity and deduct the full market value (even though you paid less for the stock), while avoiding the capital gains on that stock.\n\nI would play with tax prep software.  It is also possible that the AMT isn't going to make a big difference in your taxes due.   Knowing what that potential cost is, will help you make a better decision as to what you should do about it.
371903
The upside of a traditional IRA is that you can deduct contributions you make to it from your taxable income.  However, if you have a 403(b) plan at work then you cannot deduct contributions to a traditional IRA.  You are much better of contributing to a Roth IRA.  A Roth IRA is never tax deductible.  In other words when you fund it, you do so with your own cash that has already been taxed.  However, unlike a regular/traditional IRA, the growth from a Roth IRA is tax free.  This makes it a better bet for a young person like you.
1162875
http://www.tradingresources.org/ira-401K-investing.htm\n\nshould be able to help answer your question.\n\nMoni
266753
You should be able to roll over a 401k into an IRA without a problem.  Those Prudential people just don't want to lose your business.  Your money guy at the new place should be able to take care of all this for you.  And if he can't, find a new money guy.\n\n(Unless you bought some sort of annuity with it.  I can't tell if you did.)
151205
You can always rollover to your personal IRA account rather than taking the distribution.  Taking out the money from 401K not a good thing if you are not of retirement age because you have to give a lot to taxes and penalties.
621112
You can only contribute to an IRA from "earned income" up to certain limits depending on your age.  Capital gains and interest does not count toward earned income.  If all you earn in 2006 is $500 then you can put that $500 into an IRA but no more then that.
56556
There is no limit to the number of 401(k) plans you can have, other than the number of employers you have/had. Some employers require that you remove your funds within a certain amount of time; others just like having your money.\n\nI usually take my funds out of a 401(k) plan and put it into an IRA so that my old company cannot continue to manage (or mis-manage, think Enron) it. If you transfer it to a qualified IRA, there is no penalty. Talk to your old company and whoever's handling the IRA to make sure you transfer it properly ... there are usually standard forms. DON'T TAKE IT OUT FIRST AND THEN TRY TO RE-DEPOSIT IT ELSEWHERE ... THAT WILL INCUR PENALTIES!!
1123171
According to Section 408 of the IRC, you can purchase land, commercial property, condominiums, residential property, trust deeds, or real estate contracts with funds held in many common forms of IRAs.\n\nThe trick is finding an IRA custodian who handles real estate.  But it can be done.  Once you find such a custodian, you would simply roll your 401K into an account.
123484
I agree, A ROTH IRA makes more sense in a lower-middle class income situation.  You don't really need an income tax deduction right now.\n\nThere IS a reason to open a traditional ira, however.  If you were in a high tax bracket, you would be able to lower your reported income by $4,000 this year (or $5,000 if you are over 50 years), thus potentially lowering your tax bracket.\n\nIf you have a 401k at work, ask about the brand new ROTH 401k, which puts after tax money into a 401k for you.  Again, this would be perfect in your situation, since you could put away more than $4,000 (up to $15,000 this year) and the money would come out tax free at retirement, when you could potentially be in a higher tax bracket.
31570
Yes you can. Check with a financial planner and or an accountant though. Depending on your income you may not qualify for a deductible ira or a roth ira.
131505
You can, but it is redundant. Retirement funds are tax deferred; annuities are tax deferred. Unless you really like the additional guaranteesw offered by some annuities, and you're willing to pay the costs of the annuity then OK, but otherwise why pay the additional fees?
779084
There is a pension, 401k and an IRA.
545529
You will be greatly penalized if you tap into that 401K now. If you can make it without tapping into it you will be much better off. You can roll it into an IRA and not be penalized. In the process of rolling it into an IRA you can arrange to have some of the money for living expenses but it will cost you.
1176821
I think...your question...is kinda confusing.  There is the Tradional IRA, Roth IRA and 401(k).  I am not sure there is anything such as Tradional 401(K).\n\nif you're talking about 401(k) - you can move your 401(k) from previous employer to your current employer's 401(k) , OR if you want more options, besides 10 or so mutual funds your current employer offers ( or similar number of funds offered by your previous employer ), you will be better off, rolling your 401(k), into a ROLLOVER IRA. Of course, everytime you trade you're going to pay commissions, which may not be the case in 401(K)\n\nif you're talking about Traditional IRA to ROTH IRA : if you meet certain IRS criteria ( such as be Single, or file jointly if you're married and above all have a Adjusted Gross Income of less than 100K. )  If you think you're going to be in the same Tax Bracket as you are today or above that, when you're 50s ( i think 57 or something like that ),  you will be better off, paying taxes on your earnings in your traditional IRA, TODAY,  at your current lower federal income tax  bracket, so you don't have to pay ANYTHING in your ROTH IRA - even if grows to be Billions of $$$$.  As usual, there are the inherent benefits of ROTH IRA - you will not be required to withdraw monies from it ( with Traditional IRA you will be forced to take out money in 50s and pay taxes on it - if you don't you pay penalty ). You can pass on the ROTH IRA to your kids, etc.\n\nAs usual, consult a financial advisor, as each case varies.  \n\nOne more thing....If your considering converting traditional IRA to ROTH, be prepared to shell out taxes on your earnings/income - from out of your own pocket - DON'T CONSIDER PAYING IT OFF WITH YOUR EARNINGS/INCOMES FROM TRADITIONAL IRA - YOU WILL PAY EARLY WITHDRAWL PENALTY AT 10%