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July 7, 2006, Newsletter Issue #25: A 401(k) and an IRA
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Tip of the Week
Here's a bit of info IRA investors should consider when contributing to an IRA account: you can make contributions to your company's 401(k) plan at the same time that you contribute to an IRA. Because many companies match at least part of your 401(k) contributions with company funds, use the 401(k) account first. Once you've achieved a contribution level that makes you eligible for the most matching funds you can get, start contributing to an IRA.
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