If you can save more than $2000/year, the 401(k) plan is the better way to go.You are limited to $2,000/year pretax in a traditional IRA. Those limits don't apply to a 401(k).The limit for 1999 in a 401(k) is the lower of $10,000 year or the plan maximum. The plan maximum is plan specific, but an example would be 15% of pay. (15,000 salary x 15% is $2250) IRS tax savings of 2250x15% + state taxes.At salary levels below certain dollar levels, if you can afford it, you are allowed to contribute to both.I don't have the limits memorized, they're in Publ 590 available on the IRS website).... The scary part is ..... I know the Publication # .... ;-)
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