I just started work at a company where I can participate in a Supplemental Retirement Account, a 403(b) where I can contribute 5% of my pretax earnings each year. I already contribute to a Roth IRA ($2k/year). Can I participate in this SRA even though I contribute to my Roth also? Just wondering what the IRS rules on this are. My salary is less than $40k/year.

Any help much appreciated.

Phoolisme

Phoolisme asks:

<<I just started work at a company where I can participate in a Supplemental Retirement Account, a 403(b) where I can contribute 5% of my pretax earnings each year. I already contribute to a Roth IRA ($2k/year). Can I participate in this SRA even though I contribute to my Roth also? Just wondering what the IRS rules on this are. >>

Yes, you may participate in both the Roth IRA and the 403b plan at the same time. Contributions to one have no effect on your ability to contribute to the other.

Regards..Pixy

You can participate in the 403b no matter what your income is. There are no limits to that. Your contributions are capped, but there is no income limit to contributing to a 403b.

You can participate in both the 403b and the Roth. I think until you hit $95K in income, you can do both. Ater that, the Roth goes away. But, you can still contribute to a regular IRA at any income level.