401(k) vs IRA in Oregon

For 2025, you can contribute up to $23,500 to a 401(k) ($31,000 if age 50 or older). IRA limits are $7,000 ($8,000 if 50 or older). You can contribute to both in the same year, giving a combined maximum of $30,500 ($39,000 for those 50+).

Financial advisors generally recommend this order: (1) Contribute enough to your 401(k) to get the full employer match (free money), (2) max out a Roth IRA for tax-free growth and flexibility, (3) go back and max out the remaining 401(k) space. This strategy balances tax benefits, employer matching, and investment flexibility.

Withdrawals from Traditional 401(k) and Traditional IRA accounts are taxed as ordinary income at both federal and state rates. In Oregon, this means retirement withdrawals are subject to the state income tax. Roth 401(k) and Roth IRA qualified withdrawals are tax-free at both federal and state levels.

Yes. You can contribute to both a 401(k) and an IRA in the same year. However, if you have a 401(k) at work and your income exceeds certain thresholds, your Traditional IRA contributions may not be tax-deductible. Roth IRA contributions have separate income limits. Having both gives you more retirement savings capacity and flexibility.