Can I Contribute to Both a 401(k) and an IRA?
Yes. The limits are separate. Being covered by a workplace plan can affect whether a traditional IRA contribution is deductible, and income affects Roth IRA eligibility. Here's how it works.
Quick answer
Yes. 401(k) and IRA contribution limits are separate, so you can contribute to both in the same year. Two catches: if you're covered by a workplace plan, your traditional IRA deduction may phase out at higher incomes, and Roth IRA eligibility phases out at higher incomes too.
How the pieces fit
| Account | Contribution limit | Income limits |
|---|---|---|
| 401(k), 403(b), 457(b) | Its own annual limit | None for contributing |
| Traditional IRA | Separate annual limit | Anyone with earned income can contribute; deduction may phase out if covered by a workplace plan |
| Roth IRA | Shares the IRA limit with traditional IRA | Eligibility phases out at higher incomes |
The IRS sets and adjusts the limits and phase-out ranges.
A common order of priorities
- Contribute enough to the 401(k) to get the full match.
- Fund an IRA if it offers better investment options or Roth access.
- Return to the 401(k) for additional tax-advantaged savings.
This isn't a rule; your fees, fund choices, and taxes matter. See IRA rules and traditional vs. Roth.
The takeaway
You can use both accounts. Check whether your traditional IRA contribution is deductible and whether you're eligible for a Roth IRA, based on your income and workplace coverage.
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