Reply to Explain like I'm 5... maxing out retirement

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[quote=Anonymous][quote=Anonymous]I feel like I am smarter than this post will make me sound, but I cannot figure out what maxing out retirement means.

Let's say I have access to four retirement vehicles:
Traditional 401k through work
Roth 401k through work
Roth IRA
Traditional IRA

My income puts me out of the running for a Roth IRA, so I'm down to three options.

I can put $6k into my Traditional IRA, right? Regardless of any 401k investments?

Now where I'm really stuck... $20,500 is the maximum for the TOTAL of my traditional and Roth 401ks, right? [b]Or can I contribute that in EACH? [/b]

So if I'm understanding correctly, the absolute maximum I can contribute in a given year is $26,500?

(for the sake of this question let's ignore Backdoors, that feels like a problem for another day...)[/quote]

you got it right. 20.5 is limit - you can do both as long as it doesn't go over the limit of 20.5.

if you are going to do traditional IRA, that the time to look into backdoor, not later.

[/quote]

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