I have a 401K through my job, do I need an IRA as well?
How do I decide?
Answers | 10
Assuming you do have cash left over, the answer to your question is YES. You can contribute to a Roth IRA, which is funded with after tax dollars and grows tax free.
If you are young and qualify to contribute to a Roth IRA, you might consider doing so after you contribute the maximum amount to get any matching in your 401(k).
Even if you are older, it might make sense to do the Roth. Having both pre-tax and post-tax money in retirement accounts gives you better flexibility with income in retirement. With the Roth IRA, you can take money out without increasing your tax bracket.
A financial adviser can help you decide what is going to work best in your personal situation.
Consider ROTH IRA, or another tax free vehicle Whole life or Variable Universal Life.