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Pardon me if this has been covered (couldn't find it in a search...)According to what I've read, a SIMPLE plan seems to be categorized more like a 401K than like an IRA. Is this correct? I currently am enrolled in my companies (non matching) 401K and I have a ROTH IRA. My question is this: can my wife who is self employed set up a SIMPLE (or even a Keogh) AND still contribute to her ROTH IRA?
If not, it seems to me that 2k roth + 3k straight investment per year would be (roughly = contrib after taxes to 6k in SIMPLE) more advantageous than 6k in a SIMPLE given 25+ years to retirement. Any experts want to confirm or deny?

Thanks Fools

Jay
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No. of Recommendations: 1
Pardon me if this has been covered (couldn't find it in a search...)According to what I've read, a SIMPLE plan seems to be categorized more like a 401K than like an IRA. Is this correct? I currently am enrolled in my companies (non matching) 401K and I have a ROTH IRA. My question is this: can my wife who is self employed set up a SIMPLE (or even a Keogh) AND still contribute to her ROTH IRA?

Yes. SIMPLEs, SEPs, and Keoghs are retirement plans for the self-employed, just like your 401(k) is a retirement plan for you. She can contribute to both a retirement plan and a traditional or Roth IRA.

See Publication 590.

Phil Marti
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