“I truly believe that the reason people don’t live out their ideal life...is because they don’t know where to learn.”
— Stephen Alred Jr.

Q&A: Can I save into an Roth 401(k) and 401(k) at the same time?

Short Answer: Yes.

Long Answer: Let's start by saying this, your 401(k) is one account. The real questions is whether you can make Roth contributions and regular contributions at the same time.. You can contribute to both, but make sure to consult with your human resources representative to make sure there are no restrictions (besides what the IRS imposes). 401(k)s have a distinct advantage over IRAs and that's the higher contribution limit. This is a gift, use it!

Want to know the icing on this cake? There are currently no income limitations to contribute to a Roth 401(k). This is great news for anyone who makes too much to take advantage of a Roth IRA. 

When you take the Roth option either an IRA or 401(k) you pay with after-tax dollars. This means that you are paying taxes on it now, in order to not pay taxes on your investments later. Why is this great? Because paying on it now will give your investments an opportunity to be withdrawn tax-free. Want a good example read our candy analogy here (place link to that blog post).

Are you saving into your Roth and Traditional retirement plans at the same time? Do you plan to? Let us know if this was helpful by heading to our contact us page and sending us a message. You can also visit our parent company.

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