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After doing my taxes, I was advised to discontinue my IRA contributions becuase a pecentage of my 401k goes into a pension/savings plan. I was also advised to increase my contributions, although my empolyer only matches a 1/3. Is this good advice?

Maybe. Since you began with "After doing my taxes", it may be that your advisor was suggesting a way to reduce your current tax burden. Because you're eligible to participate in a 401K plan, you might be earning too much to fully deduct $2,000 to a Traditional IRA plan.

If you are making non-deductible contributions to a Traditional IRA, you would probably be better off either increasing your 401K contributions to reduce your current tax burden, or making after tax contributions to a Roth IRA which will provide tax free growth for retirement.

I have been just contributung up to what my employer would match; and have been contributing the rest in a seperate IRA acoount, figuring I would be better served not tying all my money up with my employer, especially since the pension plan is just a savings and is not being matched.

If you cannot deduct Traditional IRA contributions because you earn too much, and don't want to be restricted by the investments offered by your employers plan, a Roth IRA is an option (assuming you earn less than $150,000). Roth contributions aren't deductible this year, but when you withdraw the money in retirement, it's all tax free (contributions and gains).

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