Guest Suanne Posted June 17, 2003 Posted June 17, 2003 Can a participant in a 401(k) plan take advantage of the catch-up contributions in both the 401(k) plan and an IRA?
Michael Devault Posted June 17, 2003 Posted June 17, 2003 Yes, they can. The catch-up for participants age 50 or older in a 401(k) plan is not coordinated with the similar catch-up for IRAs. Thus, in 2003, it's possible to put an additional $2,000 into the 401(k) and an additional $500 into an IRA. Keep in mind that participation in the 401(k) may affect the deductibility of a contribution made to a traditional IRA.
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