Greetings, Jeff, and welcome. You asked:I have recently rolled over my 401k to a self directed IRA. I have also recently enrolled in my employers simple plan. Unfortunatly my advisor cannot anser any of my questions. She can only tell me exactly where she wants me to put MY money.My questions are as follows.1. Can I make contributions to both accounts during 2001?2. What are the details . Such as contrbution amounts and taxes?Yes, you may make contributions to both your rollover IRA and to your SIMPLE in the same year. However, any contribution to your rollover IRA will probably not be deductible due to your participation in the SIMPLE. Also, doing so will forever make that money ineligible for a transfer to a new employer's 401k plan assuming you wished to do that in the future. Therefore, you will probably be far better served by making a contribution to a Roth IRA. If you contribution is nondeductible, then that's a better route to go. Also, it preserves your ability to later transfer the rollover money to a new employer's plan.You may contribute up to the smaller of 100% of your pay or $6,000 per year to the SIMPLE. In the IRA you may contribute $2,000 to an IRA or your earned income, whichever is less.For more on IRAs and SIMPLEs, see our Foolish Retirement Plan Primer at http://www.fool.com/Retirement/RetirementPlanPrimer.htm and/or our IRA area at http://www.fool.com/money/allaboutiras/allaboutiras.htm.Regards..Pixy
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