I have already maxed out my Roth IRA, and my job does not offer 401K.
Where else should I invest in for my retirement? Can I invest in traditional IRA after I maxed out Roth IRA?
by Matthew Crisafulli
This is the answer to a question originally posted on nerdwallet.com
If you have already maxed out your Roth IRA for the year, you CANNOT contribute to a traditional IRA in the same year.
The IRS lets you contribute $5,500 per person ($6,500 if you are over 50) to either your Roth IRA, your traditional IRA, or some combination of both, as long as the total contribution between both types of IRAs is not more than the annual limit.
I recommend opening what is called a “taxable” account. This is just a regular brokerage account where you can buy and sell the same types of investments you might buy in your Roth IRA. It will let your money grow a lot more than a typical savings account will. It is called a “taxable” account because any interest, dividends, or capital gains earned in the account are reported to you each year and you will have to pay income taxes on it.
Hope that helps!