When you start exceeding the limits of a combined IRA/401K (19K or 25K
depending on your age) you might consider other tax-advantaged
investments
than salary-defferal. Putting all you baskets in one tax program could
not
be optimal, especially over a 50-year lifetime of the these investments
where the tax laws change every 5-10 years. For example 401K
investments
are taxed at earned income rates, which are approximately double that
of long term capital gains.

Steveeb[at]aol.com wrote:

- quote -

If you are under 50 by the end of this year;
401k max is $15,000, and the Roth phaseout begins at $95K single, $150K
married (AGI). Roth max is $4,000 this year.

If you are 50 or over by the end of this year;
401k max is $20,000, and the Roth phaseout (still) begins at $95K
single, $150K married (AGI). Roth max is $5,000 this year.

The deduction for the 401k can actually help keep you under the phaseout
limit for the Roth. Excellent that you are trying to max them both out.
JOE

I currently max out my 401k (believe this year is $15k). Can I also
(outside of work) put money into a roth? Somewhere I read that you can
only invest the max. ie I could invest $3k in a roth only if I dropped
my 401k down to 12k. Someone help me out here. Thanks!