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 employer-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.