My 401-K is getting the max contribution my company will allow. I have deducted 17% before tax and a 5% after-tax contribution. The after-tax part of the account is segrigated, and it's principal is available for withdrawl with no penalty because the tax has been paid allready. Result: add $8,000/yr for total of $50,000 12/98.

I am making my 98 and 99 Roth IRA max contribution on 1/4/99. Total: $4,000.

I have $7,000 left over I want to put in a tax deffered vehicle. Options I can think of include:

*Tradional IRA. Can you contribute to a Roth and a Trad Ira for the same tax year? total 98 IRA contribution= $2,000 (Roth)+ $2,000(trad)=$4,000. still need to find a place for the other 5k of 7k.

*Variable annuity. I know there is no contribution limit, at least for me at <$40,000/year. Can I find one that lets me choose individual stocks for my account to purchase? Any draw-backs to this aproach?

*Stocks. Buy stocks I intend to hold at least until retirement in 12 years at, age 50, to avoid tax. This offers low flexibility and i think I would still have to pay tax on the dividends.

Which one is best, or a combination of these 3, or some option I don't know yet?