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Subject:  Retirement savings Date:  5/15/1998  12:23 PM
Author:  JoeSchmoe Number:  3316 of 94063


My fiance and I are starting our retirement savings plan, but are unsure about some things. Our mutual employer offers a 401K plan to which we each contribute 10% of our income. I gather this is almost certainly a good thing to do. In addition, we contribute 10% to our employer's stock participation plan (which guarantees an instant 15% return). However we are looking at a target of 40% pre-tax savings and this leaves us with about $20,000 left to do something with.

Ideally, of course, we would like to invest in the stock market in some sort of tax-deferred manner or with tax-free earnings. Given that we are participating in the 401K plan, can we also open an IRA account? What is the maximum each of us can contribute to this on a yearly basis?

Is it possible to open both an IRA and a Roth IRA, or is one permitted to open only one? Are there other tax-free investments worth considering? Government bonds, etc?

Thank you for any help,

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