Imagine you’re reviewing your benefits package, eyeing your 401(k) contributions and wondering if there’s room to save more. A 401(k) lets you build retirement savings through payroll deductions—sometimes with an employer match—while an IRA is a personal account you open independently to tap into tax advantages and a wider range of investments. Understanding whether you can use both accounts in the same year can help you lower your tax bill, diversify your portfolio, and accelerate your path to financial security.
This guide will help you answer the key question: Can I have an IRA if I have a 401(k)? We’ll cover:
- Eligibility rules and annual contribution limits
- Traditional IRA deductibility and Roth IRA income thresholds
- Smart strategies for coordinating 401(k) and IRA savings
- Best practices for rollovers and avoiding penalties
- Clear answers to frequently asked questions
Let’s explore how combining these accounts can strengthen your retirement plan.
What Are 401(k) Plans?
A 401(k) plan is a retirement savings vehicle offered by employers, allowing staff to set aside a portion of their paycheck on a tax-advantaged basis. By enrolling in a 401(k), you direct a fixed percentage or dollar amount from each paycheck into an investment account made up of mutual funds, index funds, target-date funds or other options chosen by your employer. Many businesses sweeten the deal with matching contributions, making a 401(k) a cornerstone of long-term retirement readiness.
Contributions to a 401(k) can be made on a pre-tax basis through a Traditional 401(k) or on an after-tax basis through a Roth 401(k). For the 2025 plan year, employees under age 50 may defer up to $23,500 of their salary; those 50 and older can contribute an additional $7,500 as a catch-up. Combined employee and employer contributions cannot exceed $69,000 (or $76,500 including catch-up amounts). To explore plan designs and investment lineups, check out our detailed 401(k) overview.
Traditional 401(k) vs Roth 401(k)
The Traditional 401(k) reduces your taxable income today by letting you contribute before taxes are withheld. You’ll pay ordinary income tax on withdrawals in retirement. In contrast, Roth 401(k) contributions are made after tax, but qualified distributions—withdrawn after age 59½ and meeting a five-year rule—come out tax-free.
For example, if you contribute $10,000 pre-tax into a Traditional 401(k) and you’re in the 24% bracket, you save $2,400 in current taxes. With a Roth 401(k), you’d pay tax upfront but all future growth and withdrawals would be untaxed—an attractive option if you expect your retirement tax rate to exceed your current rate.
Employer Matching and Vesting
Many employers match a portion of your contributions—commonly 50% of the first 6% you defer—providing an immediate 25-cents-on-the-dollar boost if you contribute at least 6% of your salary. Vesting schedules determine when you truly “own” those employer dollars. A typical schedule might vest 20% per year over five years, so after three years you’d keep 60% of the matched amount if you leave the company.
Withdrawal Rules and RMDs
Withdrawals taken before age 59½ generally incur a 10% early-distribution penalty plus ordinary income tax (with limited hardship exceptions such as disability or medical expenses). Once you reach age 73, you must begin taking Required Minimum Distributions (RMDs). Your RMD is calculated by dividing your plan balance as of December 31 of the prior year by a life expectancy factor provided by the IRS. Failing to take the full RMD can trigger a hefty 25% excise tax on the shortfall, so it pays to stay on schedule.
What Is an Individual Retirement Account (IRA)?
An Individual Retirement Account (IRA) is a personal retirement savings vehicle that you open and fund independently of any employer-sponsored plan. Unlike a 401(k), which lives at your workplace, an IRA gives you full control over where and how your money is invested—stocks, bonds, mutual funds, ETFs, even alternative assets in some cases. IRAs carry similar tax advantages to 401(k)s but come with different contribution limits, eligibility rules, and flexibility.
There are two primary flavors of IRAs—Traditional and Roth—each offering its own set of tax benefits. In addition, small-business owners and self-employed individuals can tap into SEP and SIMPLE IRAs, which blend some employer-plan features with the simplicity of an IRA. For a deeper dive into rules, contribution deadlines, and custodial requirements, see IRS Publication 590-A.
Traditional IRA Features
Traditional IRAs let you make contributions that may be tax-deductible today, allowing your investments to grow tax-deferred until you withdraw them in retirement. Key points include:
- Upfront tax deduction for eligible contributions, depending on your income and plan coverage.
- Earnings compound without annual tax hits, so your balance can grow faster.
- Withdrawals after age 59½ are taxed as ordinary income, and required minimum distributions (RMDs) kick in at age 73.
- You must have earned income (wages, self-employment income) to contribute; spousal IRAs are available if one spouse has no earned income but files jointly.
Roth IRA Features
Roth IRAs flip the tax treatment: you fund them with after-tax dollars, and both earnings and qualified withdrawals are completely tax-free. Highlights include:
- No tax deduction for contributions, but growth and distributions after age 59½ (and after a five-year holding period) are tax-free.
- There are no RMDs for the original account owner, so your money can stay invested as long as you like.
- Contributions are limited by income: high earners may face phased-out eligibility or be ineligible to contribute directly.
- Like Traditional IRAs, you need earned income (or a spousal IRA arrangement) to qualify for annual contributions.
Can You Contribute to an IRA If You Have a 401(k)?
Yes—you can fund an IRA in the same year you participate in your employer’s 401(k) plan. Having dollars diverted from your paycheck into a 401(k) does not disqualify you from opening or contributing to a Traditional IRA or a Roth IRA, as long as you have enough earned income to cover your IRA contributions. In fact, many savers use both vehicles to maximize their tax-advantaged savings room and diversify their retirement portfolio.
That said, while IRA contributions themselves aren’t prevented by 401(k) participation, the tax treatment of those contributions can vary. If you or your spouse is covered by a workplace retirement plan, your ability to deduct Traditional IRA contributions may phase out once your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. Those thresholds change each year, so be sure to consult the IRS for the latest guidance.
Whether you qualify for a full deduction, a partial deduction, or no deduction at all, you still retain the right to contribute up to the annual IRA limit and benefit from tax-deferred growth. For a comprehensive look at eligibility rules, income phase-outs, and deductibility guidelines, see IRS Publication 590-A.
Deductibility vs Non-Deductible Contributions
When your income sits below the IRS phase-out range for a covered taxpayer, Traditional IRA contributions are fully deductible, reducing your taxable income in the year you make them. If your MAGI climbs into the phase-out zone, you can still contribute to a Traditional IRA—but those contributions become nondeductible. You won’t get the upfront tax break, though your investments continue to grow tax-deferred until withdrawal.
Roth IRA contributions, by design, are always made with after-tax dollars and are never deductible. In exchange, you enjoy tax-free growth and withdrawals in retirement—so long as you satisfy the five-year rule and are at least age 59½. Even if your income is too high to claim a Traditional IRA deduction, a Roth IRA (if within that account’s own income limits) offers an alternative path to tax-optimized savings.
IRA Contribution Limits and Catch-Up Rules
For the 2025 tax year, Individual Retirement Accounts offer savers a chance to get extra tax-advantaged contributions—especially once you hit age 50. Here’s how the limits break down:
- Under age 50: You may contribute up to $7,000 across all Traditional and Roth IRAs combined.
- Age 50 or older: You may add a catch-up contribution of $1,000, bringing the total to $8,000.
Remember that this IRA limit is separate from your 401(k) limit, but it applies collectively to every IRA you own—whether it’s Traditional, Roth, or a mix of both.
Below is a quick comparison of 401(k) and IRA contribution ceilings for 2025:
| Plan Type | Under Age 50 Limit | Catch-Up (50+) |
|---|---|---|
| 401(k) | $23,500 | + $7,500 = $31,000 |
| Traditional & Roth IRAs (combined) | $7,000 | + $1,000 = $8,000 |
Consider these two common scenarios:
• At age 45, you can sock away up to $23,500 in your 401(k) and still stash another $7,000 in IRAs—mixing Roth and Traditional contributions as you see fit.
• At age 55, your maximum goes up: you could contribute $31,000 to a 401(k) (including the catch-up) plus up to $8,000 across one or more IRAs.
By understanding these thresholds, you can plan your payroll deductions and after-tax savings to make the most of every dollar you’re allowed to shelter for retirement.
Income-Based Phase-Outs for Traditional IRA Deductibility
Your Modified Adjusted Gross Income (MAGI) determines whether you get a full, partial, or zero deduction for Traditional IRA contributions when you (or your spouse) participate in a workplace retirement plan. MAGI starts with your Adjusted Gross Income (AGI) and adds back certain deductions and exclusions—like student loan interest or foreign earned income—to arrive at the figure the IRS uses for phase-out calculations.
For the 2025 tax year, the deduction phases out over specific MAGI ranges. If your income falls below the lower threshold, you get the full deduction. If you’re above the upper threshold, you get no deduction. And if you’re in the middle, your deductible amount is prorated by how far you are into that band:
Deductible Amount = Maximum IRA Contribution × (Upper Limit − MAGI) / (Phase-Out Range)
Below we break down the rules for single filers and married couples.
Single Filers with Plan Coverage
If you file as single and you’re covered by your employer’s 401(k) or other retirement plan, your deductible Traditional IRA contribution phases out between a MAGI of $79,000 and $89,000.
- MAGI ≤ $79,000: full deduction up to $7,000 (or $8,000 if age 50+)
- MAGI ≥ $89,000: no deduction
- MAGI between $79,000 and $89,000: partial deduction
Example: You’re under 50 and earn a MAGI of $84,000. You fall exactly halfway through the $10,000 phase-out ($89,000 − $79,000). So you can deduct half of your $7,000 contribution—or $3,500.
Married Filing Jointly Scenarios
For couples filing jointly where both spouses are covered by workplace plans, the 2025 phase-out runs from $126,000 to $146,000:
- MAGI ≤ $126,000: full deduction
- MAGI ≥ $146,000: no deduction
- MAGI between $126,000 and $146,000: prorated deduction
If only one spouse is covered by a plan and the other is not, the non-covered spouse’s deduction phases out at a higher joint MAGI—$218,000 to $228,000. Below the lower limit, the non-covered spouse can claim the full deduction; above the upper limit, none; in between, a partial deduction applies.
Example: You and your spouse file jointly, only you participate in a plan, and your combined MAGI is $223,000. You’re halfway through the $10,000 band ($228,000 − $218,000), so the non-covered spouse can deduct half of their $7,000 IRA contribution, or $3,500.
Note: These income thresholds adjust annually. Always confirm the latest figures in IRS Publication 590-A.
Roth IRA Income Limits and Eligibility
Roth IRAs offer the appeal of tax-free growth and withdrawals, but not everyone can jump in directly—your Modified Adjusted Gross Income (MAGI) determines eligibility. For the 2025 tax year, the contribution window phases out over these MAGI ranges:
- Single filers: $150,000 to $165,000
- Married filing jointly: $236,000 to $246,000
If your MAGI is at or below the lower threshold, you may contribute up to the full IRA limit ($7,000 or $8,000 if you’re 50 or older). Once your income reaches the upper threshold or above, you can’t make direct Roth contributions. And if you fall somewhere in between, your allowable contribution is reduced proportionately.
Calculating Roth Contributions in Phase-Out
To figure out your reduced contribution, use this formula:
Allowed Contribution = Maximum Contribution × (Upper Limit − MAGI) / (Upper Limit − Lower Limit)
For example, imagine you’re under 50, married filing jointly, and your MAGI is $241,000. That sits $5,000 into the $10,000 phase-out band ($246,000 − $236,000). Plugging into the formula:
- Maximum Contribution = $7,000
- Upper Limit − MAGI = $246,000 − $241,000 = $5,000
- Phase-Out Range = $10,000
Allowed Contribution = $7,000 × (5,000 / 10,000) = $3,500
So you’d be eligible to contribute $3,500 to a Roth IRA in 2025.
Spousal IRA Contributions
Even if one spouse has little or no earned income, they can still benefit from a Roth IRA under a spousal IRA arrangement. As long as you file jointly and your combined earned income meets or exceeds your total IRA contributions, you can split the limit between each spouse’s Roth IRA. For instance, a working spouse earning $100,000 could support two $7,000 Roth contributions (one for each spouse) if under age 50, provided the couple’s joint MAGI doesn’t exceed the phase-out range.
This strategy doubles your household’s tax-advantaged savings and ensures that both partners can harness the power of tax-free retirement income—even if one spouse steps away from the workforce.
Coordinating 401(k) and IRA Contributions: Strategies
Balancing contributions between a 401(k) and an IRA can turbocharge your retirement savings—if you follow an order that captures tax breaks, employer matches, and investment flexibility. Here’s a straightforward approach many savers use:
- Maximize your employer match in the 401(k).
- Fund your IRA (Traditional or Roth) up to the annual limit.
- Return to your 401(k) to contribute any remaining dollars.
By following this sequence, you lock in “free money” from your employer, then tap the wider menu and potential tax perks of an IRA, and finally circle back to boost your 401(k) balance. Of course, your personal goals, income levels, and plan features might nudge you to tweak these steps. Below we explore the pros and cons of each phase and explain when a backdoor Roth makes sense.
Prioritizing Your 401(k) Match
Employer matching contributions are often expressed as “50% of the first 6% you defer,” or something similar. When you contribute at least 6% of your salary, you effectively earn an instant 25% boost on those dollars—no stock picks or market timing required. That’s as close to risk-free as retirement saving gets.
Vesting schedules, however, determine when employer dollars truly become yours. A typical schedule vests 20% per year over five years. If you leave your job at year three, you’d keep 60% of the match. By hitting the match hurdle each pay period and staying mindful of vesting, you avoid leaving money on the table.
Choosing an IRA First
Once you’ve secured the full match, directing funds into an IRA can offer two key advantages:
- Broader investment lineup: IRAs often allow stocks, bonds, ETFs, mutual funds, and even alternative vehicles that many 401(k) menus don’t provide.
- Potentially lower fees: Without plan-level administrative charges, some IRAs run at a fraction of the cost of comparable 401(k) funds.
If your 401(k) investment options are limited or carry high expense ratios, you might prioritize a Roth or Traditional IRA before topping off your 401(k). That said, always check income limits and deductibility rules—especially if you expect a tax write-off from a Traditional IRA.
The Backdoor Roth IRA
High earners who exceed direct Roth IRA income thresholds can still enjoy tax-free growth through a backdoor Roth strategy:
- Contribute nondeductible dollars to a Traditional IRA (up to the $7,000/$8,000 limit).
- Convert those contributions to a Roth IRA via a trustee-to-trustee transfer or rollover.
- Report the conversion on Form 8606; taxes may apply on any pre-tax balance.
Keep the pro-rata rule in mind: if you hold other pre-tax IRA assets, your conversion will carry a taxable portion. A backdoor Roth can be powerful for building future tax-free income, but it’s wise to run the numbers or consult a fiduciary advisor before pulling the trigger.
By sequencing your contributions—match first, IRA second, then 401(k)—and employing strategies like the backdoor Roth when needed, you’ll take full advantage of every retirement dollar available to you.
Considerations When Rolling Over a 401(k) to an IRA
Rolling over a 401(k) into an IRA can give you more control over your investments and potentially lower fees—but the process comes with important rules and traps to avoid. Whether you’re changing jobs or simply consolidating accounts, understanding the rollover options, fiduciary obligations, and common pitfalls is essential to protect your retirement savings.
Direct vs Indirect Rollovers
A direct rollover moves your 401(k) assets straight from your employer’s plan trustee to your IRA custodian. Because the money never touches your hands, there’s no withholding, no risk of missing a deadline, and no immediate tax bill. Simply tell your 401(k) administrator to send the funds to your IRA provider, and the transfer is completed without interruption.
By contrast, an indirect rollover occurs when you receive a distribution check payable to you, then deposit that money into an IRA within 60 days. While permitted, indirect rollovers carry two main drawbacks:
• Mandatory withholding: The plan administrator typically withholds 20% for federal income tax. You’ll have to come up with that withheld amount from other sources to roll over the full balance and avoid being taxed on the missing portion.
• Tight deadline: You have only 60 days to complete the rollover. Miss that window, and the distribution becomes taxable income—and if you’re under 59½, you’ll likely face a 10% early-distribution penalty on top of regular income tax.
In most cases, a direct rollover is the safer, simpler choice. It removes uncertainty, ensures you keep 100% of your retirement assets in a tax-advantaged account, and eliminates the paperwork and cash-flow headaches of an indirect transfer.
Fiduciary Duties of Advisors
When you seek guidance on rolling over your retirement plan, the person advising you may qualify as an “investment advice fiduciary” under ERISA. This designation means they’re legally bound to put your interests ahead of their own and avoid conflicts of interest. In December 2024, the Department of Labor issued updated fiduciary guidance that clarifies when advisors must act as fiduciaries and the standards they must meet when recommending rollovers, asset allocations, or IRA custodians.
Ask any advisor you work with to confirm their fiduciary status in writing. A fiduciary should provide a clear rationale for why a rollover makes sense, disclose any fees they earn, and document that the recommendation aligns with your financial goals.
Avoiding Rollover Pitfalls
Even a direct rollover can go sideways if you aren’t careful. Watch out for these common missteps:
• High-fee products: Some IRA providers offer “value-added” investments—like proprietary annuities or complex life insurance wrappers—that carry layers of commissions and surrender charges. Compare expense ratios and look for low-cost index or target-date funds instead.
• Prohibited transactions: ERISA and the Internal Revenue Code forbid certain dealings between your IRA and disqualified persons (yourself in a different capacity, your employer, or immediate family). For example, you can’t use IRA funds to buy real estate you live in, lend money to a relative, or engage in other self-dealing. Violating these rules can disqualify the entire IRA, triggering immediate taxation and penalties.
• Neglecting beneficiary designations: A rollover often involves new IRA paperwork. If you overlook naming or updating beneficiaries, you risk leaving your account to the wrong heirs—or default plan provisions that may not match your estate plan.
By sticking with a direct rollover, choosing a transparent, low-fee custodian, confirming your advisor’s fiduciary status, and following prohibited-transaction rules, you’ll maximize the benefits of rolling over a 401(k) to an IRA—and avoid unnecessary taxes or penalties along the way.
How to Open and Manage an IRA Alongside Your 401(k)
Adding an IRA to your 401(k) lineup can widen your investment choices, enhance tax flexibility, and give you more control over retirement savings. Follow these steps to get started and keep your account on track:
1. Assess Your Goals and Tax Situation
Before you open an IRA, clarify why you’re adding it. Are you seeking tax diversification, broader investment options, or a Roth vehicle for tax-free growth? Review your current tax bracket, expected income in retirement, and whether you prefer upfront deductions (Traditional IRA) or tax-free withdrawals later (Roth IRA).
2. Select a Custodian
Choose an institution that aligns with your needs—whether it’s a full-service brokerage, a low-cost robo-advisor, or an online bank. Consider fees, investment menus, digital tools, customer service, and any account minimums.
3. Open the Account and Name a Beneficiary
Most custodians offer an online application that takes 10–15 minutes. You’ll provide basic personal information, choose your account type (Traditional or Roth), and designate a beneficiary. This step ensures your assets transfer smoothly in the event of your death.
4. Fund Your IRA
You have several funding options:
- Bank transfer or check: Link your checking account and initiate a one-time or recurring deposit.
- Payroll deduction: Some employers let you divert part of your paycheck directly into an IRA.
- Rollover: If you have an old 401(k) or IRA, you can perform a direct rollover to consolidate accounts and keep funds tax-advantaged.
5. Choose Your Investments
Once funded, allocate your balance across funds or individual securities that match your risk tolerance and time horizon. You might opt for a prebuilt portfolio (target-date or risk-based) or select from ETFs, mutual funds, stocks, and bonds.
6. Monitor and Maintain Your Account
Set up periodic check-ins—quarterly or semi-annually—to review performance, rebalance your mix, and compare fees. Keep an eye on annual IRS contribution limits so you don’t miss out on catch-up opportunities or accidentally over-contribute.
Choosing the Right IRA Provider
Not all custodians are created equal. Below is a quick comparison of common IRA providers:
| Provider Type | Annual Fees | Investment Options | Minimum Balance | Digital Tools |
|---|---|---|---|---|
| Full-Service Broker | 0.20%–0.50% AUM | Stocks, bonds, funds, ETFs | $0–$2,500 | Research reports, advice |
| Robo-Advisor | 0.25%–0.40% AUM | Automated portfolios, ETFs | $0–$5,000 | Goal trackers, rebalancing |
| Online Bank or Neo-Bank | Flat $0–$25/year | Limited funds, CDs, cash | $0 | Simple dashboards |
Evaluate each on cost, customer support, and whether its tools help you stay disciplined with contributions and rebalancing.
Automating Contributions
Consistency is key. Automate your savings by setting up:
- Recurring bank transfers: Direct $200 monthly into your IRA to reach $2,400 annually without thinking about it.
- Payroll deductions: If supported, ask HR to split a fixed dollar amount between your 401(k) and IRA each pay period.
Automation turns saving into a habit and reduces the temptation to spend those funds elsewhere.
Reviewing and Rebalancing
Markets shift—and so should your portfolio:
- Schedule reviews: Block time on your calendar every 6–12 months to check allocations.
- Rebalance when needed: If stocks run up and exceed your target mix by 5%, sell a portion and buy bonds or cash equivalents to restore balance.
- Monitor fees: Annual expense ratios and trading costs can eat into returns. Consider lower-cost alternatives if you spot expensive holdings.
By following these steps—choosing the right custodian, automating deposits, and periodically rebalancing—you’ll seamlessly integrate an IRA with your 401(k) and keep your retirement plan on course.
Frequently Asked Questions About Having Both a 401(k) and an IRA
Balancing contributions to a 401(k) and an IRA often raises questions about limits, eligibility, and potential penalties. Here are clear, concise answers to the most common queries.
How Much Can I Contribute to an IRA if I Also Have a 401(k)?
Your IRA contribution limits for the 2025 tax year remain the same regardless of 401(k) participation:
- Under age 50: up to $7,000
- Age 50 or older: up to $8,000 (includes a $1,000 catch-up)
These figures represent the combined cap across all Traditional and Roth IRAs. You must have enough earned income to cover the contribution. Remember, this IRA limit is in addition to your 401(k) contribution room of $23,500 (under 50) or $31,000 (50+) in 2025.
Can I Still Contribute to an IRA if I Have a 401(k) at Work?
Yes. Enrolling in your employer’s 401(k) plan does not prevent you from opening or funding a Traditional or Roth IRA, provided you have sufficient earned income. The one caveat is deductibility: if you (or your spouse) participate in a workplace retirement plan, the tax deduction for a Traditional IRA contribution may phase out once your Modified Adjusted Gross Income (MAGI) surpasses certain IRS thresholds. Even if you lose the deduction, you can still make nondeductible Traditional IRA contributions or contribute to a Roth IRA, subject to its own income limits.
Can I Max Out a 401(k) and an IRA in the Same Year?
Absolutely. Each account has its own set of limits:
- 401(k): $23,500 (under 50); $31,000 (50+)
- IRA (Traditional + Roth combined): $7,000 (under 50); $8,000 (50+)
Funding both to the maximum can turbocharge your retirement savings. Just be mindful that a full Traditional IRA deduction depends on your income phase-outs. Even nondeductible IRA contributions grow tax-deferred, and Roth contributions (if eligible) qualify for tax-free withdrawals in retirement.
What Happens if I Over-Contribute?
Exceeding your IRA limit triggers a 6% excise tax on the excess contribution each year it remains uncorrected. To avoid this:
- Withdraw the excess amount and any earnings on it by your tax-filing deadline (including extensions).
- Report the corrective distribution properly—earnings are taxable or, if allowable, can be returned to the IRA in the following year.
Failing to remedy an over-contribution means the 6% penalty recurs annually. Keeping a close eye on contributions and coordinating between plans will help you sidestep these extra charges.
Making the Most of Your Retirement Accounts
Balancing a 401(k) and an IRA isn’t just about maxing out contribution limits—it’s about crafting a retirement strategy that adapts to your goals, income, and risk tolerance. Using both vehicles together gives you greater tax diversification: pre-tax savings in your 401(k), potentially tax-deductible IRA contributions, and tax-free growth in a Roth IRA. On the investment side, you can fill gaps in your 401(k) lineup with broader IRA options or use a Roth IRA to secure a pool of untaxed funds for future flexibility.
To stay on track, treat your retirement plan as a living document. At least once a year, review your total savings across accounts, adjust contributions to capture any higher limits or catch-up opportunities, and rebalance your mix to reflect shifting market conditions or life changes. Automated tools—whether through your employer portal, your IRA custodian, or an independent dashboard—can flag when you’re nearing limits or when your asset allocation drifts from your target.
Staying informed is equally important. Tax laws and income thresholds change annually, so keep an eye on IRS updates or subscribe to a reliable retirement newsletter. If your situation grows more complex—perhaps you receive a windfall, switch jobs, or explore a backdoor Roth conversion—lean on professional guidance. A fiduciary advisor can run “what-if” scenarios, explain how new rules affect your deductibility, and recommend adjustments that preserve your long-term growth potential.
By coordinating contributions, scheduling regular check-ins, and tapping expert support when you need it, you’ll turn two separate accounts into a unified retirement engine. Whether you’re just starting your career or closing in on the finish line, a proactive, integrated approach can help you make the most of every tax-advantaged dollar.
Taking Control of Your Retirement Savings
Combining the tax advantages and investment choices of both a 401(k) and an IRA puts you in the driver’s seat of your financial future. By maximizing employer matches, leveraging IRA contribution room, and diversifying across pre-tax and tax-free buckets, you can build a more resilient nest egg. Regular check-ins—whether quarterly or annually—ensure you’re capturing catch-up opportunities, staying within contribution limits, and keeping your asset allocation aligned with your goals.
Taking control also means staying on top of shifting rules. Income thresholds, phase-out ranges, and RMD guidelines evolve each year, so bookmark IRS updates or leverage digital tools that flag upcoming changes. Automating contributions and setting calendar reminders for portfolio reviews takes the “will I remember?” question off your plate, giving you confidence that your plan stays on track even during busy seasons.
Of course, coordinating multiple retirement accounts and deciphering fiduciary responsibilities can feel overwhelming. That’s where an independent specialist can make all the difference. Summit Consulting Group, LLC offers hands-on retirement plan administration and fiduciary services that respect your existing custodians and recordkeepers. Whether you need a 3(38) investment manager to fine-tune your lineup, a 3(16) administrator to handle the paperwork, or an ERISA 402(a) Named Fiduciary to shoulder compliance risk, our team is here to simplify the process.
Ready to take charge of your savings strategy? Visit the Summit Consulting Group, LLC homepage to explore how our expertise can help you maximize tax benefits, streamline administration, and reduce plan-sponsor liability—all while keeping your relationships with other providers intact. Your retirement goals deserve nothing less than a clear plan and a trusted partner at your side.
