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I have a friend (ahem) who is starting her 401k in her new job. A family member has offered to start an IRA for her this spring. My friend is worried about putting money in these two different retirement plans. Are taxes going to be a problem or will there be a deferment of some kind? Anybody have a similar concern?

I don't know about taxes so this may be no good to you...From what I've read on different websites (i.e. Transamerican Goaltender, Merryl Lynch)you should try to max out the 401k before contributing to an IRA. I think the reasoning behind it is the 401k's are usually matched.

Just an idea!
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