Can I contribute to both an IRA and a 401(k) in the same year?

Yes – having a 401(k) at work does not stop you from also funding an IRA. In 2025 you can defer up to $23,500 into a 401(k) ($31,000 if 50+) and separately contribute up to $7,000 to an IRA ($8,000 if 50+). The two limits are independent, so a maxed-out saver under 50 can stash $30,500 across both. The only catch is on the Traditional IRA deduction: if you're covered by the 401(k), your IRA deduction phases out at higher incomes, and Roth IRA eligibility still depends on your MAGI. But you can always contribute to an IRA even when the deduction is limited – it just becomes nondeductible. Using both accounts is one of the best ways to maximize tax-advantaged retirement saving each year.