Jul 9

I have a question about 401K and Roth IRA contribution limits that no one seems to be able to answer for me. I contribute about 10% of my salary to my 401K plan each year. My employer matches 5%.  I also have a Roth IRA that I had before I started with my present employer.

My question is about contributions to the Roth IRA. The accountant at HR Block told me that I cannot contribute to my Roth IRA since I contribute to a 401K Plan.  Is that true?

I find it hard to believe that I can’t tuck away more retirement into the Roth IRA. I’m turning 50 next month.

Although I can increase my contribution to the 401K Plan, I would prefer doing a maximum contribution to my Roth IRA, because my investment choices are much more robust that the limiting number of mutual funds I’m allowed to invest in with the 401K.

I hope you can answer this for me, and tell me what I’m allowed to contribute to each retirement account.

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