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401(k) and IRA Limits Are Separate
- 401(k) and IRA contribution limits are completely separate and do not affect each other.
- The pro rata rule applies only to traditional IRAs, not to 401(k)s or other employer plans.
Convert 401(k) to Roth Post-Residency
- Consider converting traditional 401(k) contributions to Roth after residency during lower income years.
- Rolling to a Roth IRA may be best if in-plan Roth conversion isn't available.
Max Contributions Before Job Change
- Max out your 401(k) or 403(b) at your current job before leaving due to possible waiting periods at new employer.
- Verify if your new employer allows contributions the same calendar year before deferring contributions.