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Can you contribute to both a Roth IRA and a 401(k)?

Yes, you can contribute to both a 401 (k) and a Roth IRA, but there are certain limitations you'll have to consider. This article will go over how to determine your eligibility for a Roth IRA.

What are the benefits of contributing to a Roth IRA?

A Roth IRA accepts contributions on income that has been taxed. When you make the withdrawals in retirement years, they are not subject to income tax. The main advantage of a Roth IRA is that the gains your investments make are also not taxed as income.

What are the benefits of contributing to a 401(k)?

The other huge benefit of the 401 (k) is that it allows you to put a lot of money away for retirement in a tax-advantaged way. The annual 401 (k) contribution limit is $20,500 for tax year 2022, with an extra $6,500 allowed as a catch-up contribution every year for participants age 50 or older.

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