Can You Have a Roth IRA and a 401(k)?

It is possible to contribute to both a Roth IRA and a 401(k) simultaneously, though each account maintains its own unique annual funding limits. For the year 2026, individuals can put up to $24,500 into a workplace 401(k) and $7,500 into a Roth IRA, with additional catch-up contributions available for those aged 50 and older. Financial experts suggest prioritizing a 401(k) enough to secure any available employer match before considering the broader investment options found in a Roth IRA. The choice between these accounts often depends on whether a saver expects to be in a higher or lower tax bracket during their retirement years. Utilizing both types of accounts can offer tax diversification and a more robust strategy for long-term financial security. Overall, these resources provide a roadmap for navigating contribution rules and choosing the best investment vehicles for individual goals.“If you don't find a way to make money while you sleep, you will work until you die.”Warren BuffettThis episode includes AI-generated content.