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Yes, you can have both. The main advantage of a Roth IRA is that it can be withdrawn at any time without tax or penalty.
Thanks Lucie. Sorry to be a pain but I have another question: what happens to the tax on an IRA if I take a distribution in the first year of my retirement?
No need to be sorry Laura, we’re here to help 🙂
If you take a distribution before you turn 59 1/2, it’s treated as regular income and will be taxed at your ordinary income tax rate. If you take it after age 59 1/2, it’s treated as long-term capital gains and is taxed at lower tax rates.
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