No. of Recommendations: 1
>> So question I have is that it seems that my only tax friendly retirement investing account is my 401k. For retriement saving, does it make sense to put as much as I can into the 401k and choose among the 12-13 fund choices I have there? Or to do some retirement investing in a taxable account? (eg. individual investing account at fidelity in my case). <<

I'd say so. Depending on how much over $110K you'll be, aggressive contributions to the 401k plan also reduce your MAGI and could make you at least partiall eligible for a Roth.

For example, if a single person had a MAGI of $114K with no 401k contributions, they would be ineligible for a Roth. But if they put the full $14,000 into a 401k plan for 2005, they would drop the MAGI to $100K, and by so doing be able to contribute $2,667 to a Roth as well.

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