If someone knows the answer to this, I'd be grateful...I contribute to a 401K through work, and I want to start a Roth IRA. I have no other IRAs. This would be my first ever. Does anyone know if there's a certain set limit on how much a person is allowed to contribute when they have both a 401K and a Roth IRA? Before I set up the IRA, I need to know if I need to cut back on either the 401K or the new Roth IRA.

I've looked on various Web pages about this issue (and to its credit, the official Roth IRA page is overwhelmingly and amazingly comprehensive), and this specific issue doesn't seem to be addressed.

Thank-you!
Jim Bauman

You can ALWAYS contribute $2,000 a year to IRAs, even if you are in a 401(k) plan. The $2,000 may not be deductible if you participate in a 401(k) plan during the same year, but it is $2,000. If you are under the income threshhold for a Roth, you can contribute the $2,000 to a Roth, otherwise you can make a contribution to a traditional non-deductible IRA (you can't make a contribution to a deductible IRA if you participate in a 401(k) plan).

Thank you for the information, Alf! It was very helpful and clear.

Jim Bauman