Question

what additional funds can you invest in a traditional or roth ira annually when you max-out your 401(k) contribution when you are under 50 years of age (subject to income limits)?

Answer 1

Under 50, you can contribute up to $6,000 annually to a Traditional or Roth IRA after maxing out your 401(k), subject to income limits for Roth IRAs.

Step-by-step explanation:

The additional funds you can invest annually in a Traditional or Roth IRA when you have maxed out your 401(k) contribution and are under 50 years of age depending on the current tax year's contribution limits. Regardless of your 401(k) contributions, as of 2021 and 2022, you can contribute up to $6,000 to a Traditional or Roth IRA.

It is important to be aware of income limits that may affect your ability to contribute to a Roth IRA. Contributions to these retirement accounts can enhance your savings and potentially offer tax benefits, adhering to the IRS's annual limits and rules.