The IRS defines a traditional IRA as an individual retirement account that allows contributions up to $5,500 per year ($6,500 if you’re 50 or older). You can make additional contributions to your IRA after age 70 1/2. Traditional IRAs are tax-deferred accounts, meaning that any earnings grow tax-free until withdrawn.
Yes, you can contribute to both a traditional IRA and a Roth IRA. However, if you want to maximize your contributions, you should only do so to one type of account. For example, if you are contributing to a traditional IRA, then you cannot also contribute to a Roth IRA.
Can I Contribute to Both a 401(k) Plan and an IRA?
Yes! You can contribute to both a 401k and IRA at the same time. If you have not already done so, open a Roth IRA account. Then, once you reach age 50, you can start contributing to a traditional IRA. There are no income limits on contributions to either type of account. However, if you are over 70 1/2 years old, you cannot make any additional contributions to either type of plan.