Ask Bob: Maxing Out Retirement Contributions

Robert Powell

Question: If I am maxing out a 457(b), can I also participate in my family-owned company (second job) SIMPLE IRA and max out there as well? And take advantage of maxing out on a Roth IRA every year, too?

Answer: According to Daniel Lee, a wealth manager at Plancorp Financial Services , 457(b) plans have a separate contribution limit and a maximum contribution can be made to both a 457(b) plan and a SIMPLE IRA plan.

Contributions to these plans do not impact the amount that can be contributed to a Roth IRA account, so in theory, you can max out all three retirement accounts in a given year, says Lee, who is also instructor for the Personal Financial Planning program at the University of California at Berkeley Extension Program.

Be aware, however, of the income limit for direct contributions to Roth IRA accounts, as well as other rules surrounding the contribution to these plans. Read more on this from the IRS.


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