Can I contribute to both a Simple and Roth IRA plan?

[Guest Strath]

My parents started a Roth IRA for me a couple of years ago. I have since started working for a company that has a Simple IRA plan. Now, I am contributing to that on my own. My parents are still contributing the $2000 to the Roth on my behalf.

I am concerned now that I should not be in both. It has made me a bit uneasy, as I seem to find conflicting information.....please help!

Thank you for your time.

[Appleby]

Strath,

Your participation in a SIMPLE IRA or any other employer sponsored plan does not affect your ability to contribution to a Roth or even a traditional IRA. While it may affect your ability to deduct contributions made to a traditional IRA, it has no impact on your Roth IRA contribution as such contributions are never deductible.

Your only concern is to ensure that you have compensation up to the amount contributed to your Roth IRA-.

Reminder- the maximum amount that can be contributed to an IRA , inclusing Roth IRAs , as a participant contribution, is 100% of compensation, up to $2,000.

[Guest Strath]

I am not sure if I understand your reply....

May I contribute the $2000 max to the Roth AND the continue my contributions into my Simple IRA through my employer?

[Appleby]

Yes.