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Cruian t1_jeancfb wrote

>Can I open a Roth IRA account on my own and contribute 6k/year if I enrolled in my employer's Roth 401k?

Yes, limits are separate.

>Am I correct in assuming that the $22,500 limit for 2023 applies to these 2 accounts combined?

Yes. Those 2 share the same limit.

>If so, then the Roth IRA with $6k limit is a separate entity and I can open one and contribute to that on my own?

Yes.

There are 2 splits on standard retirement accounts:

  • Account type (401K, IRA being the most common, but a few other types do exist)

  • Tax treatment (Roth vs Traditional)

The annual limits supply to the account type, not tax treatment.

>if I enrolled in my employer's Roth 401k?

Is that actually best for you?

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DarkHorseWizard OP t1_jeaoxrl wrote

Oh wow! I always thought that Roth 401k was the best since you don't have to pay any taxes once you take the money out assuming it grew substantially. Thank you for letting me know!
So a better plan would be it seems to max out the traditional 401k, and then put 6k in the Roth IRA it seems, right?

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diatho t1_jeaqgvg wrote

Run your own numbers and do a bit more research. Roth is good for some people it doesn’t always suck.

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