I know that I can not contribute to both a Roth and a Traditional IRA in the same year.Actually you can--but the aggregate total of your contributions to Traditional and Roth IRAs cannot exceed the annual limit ($3,000 in 2004, $3,500 if 50 or older by December 31, 2004).My question is whether I could roll over my 401k into a traditional IRA, each year and not worry about the tax deduction, and still make my $2000 annual roth contributions?Yes. A rollover from other qualified plans are not contributions, so rollovers do not count towards the contribution limits.Note: the vast majority of employer plans don't allow an in-service rollover to a "Rollover IRA" so most employer plans would require that you separate from service (quit, get fired, etc.) before you can move those funds.
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