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Retirement accounts

By Terry Savage on June 30, 2020 | Financial Planning / Retirement


I have an 457(b) Deferred Compensation account through my employer already. I want to know if I can open an Roth IRA account at the same time also but with a different company? Is it legal to have both accounts? Will I have to pay tax penalties because I have both accounts?

Thank you

Terry Says

Yes, you can have both a 457(b) and a Roth Ira — IF you qualify based on income levels.
If you’re married filing jointly, you must have Modified Adjusted Gross Income (MAGA) of less than $196,000 to make the full contribution of $6,000 to a Roth (or $7,000 if age 50 or older).
Read this excellent article on Investopedia re the rules for having both types of accounts.



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