OK, let me get this striaght in my head
I can contribute to my 401k, an IRA and a RothIRA at the
same time and recieve the tax benefits on the 401k and
regular IRA as long as I don't make to high of a salary?
I read this to mean that:
1. I can have some cash socked away in a 401k that will be
available for withdrawl without penalty at age 55.
2. I can have cash in a traditional IRA that I can draw SEPP
disbursement on atleast 5 years before age 59 1/2 without
penalty.
3. I can have cash in a RothIRA that I can withdrawl the
principal out without penalty anytime and withdrawl any
of the funds tax free after age 59 1/2.
4. As long as my adjusted gross income is below $44,000
(trying to remember amount I read for single) I can still
deduct both 401k and IRA contributions for tax purposes.
5. I can max out my 401k contributions, but have to decide
how to dice up the 4k/year for the additional IRA and RothIRA
to achieve the result I desire.
I have to be wrong! This seems like a sweet deal. To be
able to take advantage of the benefits of each type of
retirement account to avoid penalties seems like it could
only happen in a dream.
OK, this is where you take over and correct my oversights
and set me straight