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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Re: IRA vs 401K Date: 2/28/1999 12:01 PM
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Greetings, Sbranki, and welcome. You asked:

<<Hello fellow Fools! I have a retirement investing question and I hope that someone can help. I am currently serving in the Armed Forces. We do have a pension plan, but it is not an investment product. A couple of years ago I started investing in an IRA. Last year, I switched to a Roth IRA. Now, I hear that with the new budget for 2000, Congress has passed a 401K type investment option for military members. So, are there any restrictions to my Roth IRA and a 401K? In other words, can I invest money in both a Roth IRA and a 401k at the same time, or do I have to chose one of the two?

Does anyone have the answers? Please help.>>


First, absolutely nothing new has passed Congress yet, let alone been signed into law by the President. Therefore, I certainly wouldn't get overly excited about a possible 401K-like plan for the military. Much remains to be resolved in this year's budget before that happens, if it ever does.

Second, if and when such a thing happens, you may still use a Roth IRA assuming you meet the Adjusted Gross Income limits for doing so. Participation in a qualified retirement plan does not prevent the use of a Roth provided you otherwise qualify to do so. As a retired war monger myself, I'll virtually guarantee that your AGI will be such that you do.

Regards….Pixy
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