Someone here will know this, I am sure... Background: I've contributed annually for many years to a traditional IRA (I didn't qualify for a Roth IRA because my income was too high). For the last 7 years, I have also made the maximum contribution annually to a 401(k). Last year, because the laws changed, my new financial advisor had me convert the traditional IRA money into a Roth IRA. I will pay taxes on that money this year. He also set me up to make monthly IRA contributions which are debited from my checking account. Question #1: he set this up so that the money goes directly into a Roth IRA. My understanding is that, since my income still exceeds the Roth IRA limits, I must contribute to a tranditional IRA and then (as long as the laws allow it) covert that money to a Roth IRA periodically. He says it doesn't matter- as long as I was going to covert it to a Roth annually, it is okay to just skip that step and go directly into a Roth. This doesn't make sense to me because I think I need to pay taxes on that money now, rather than defer them. Who, if either of us, is correct? Question #2: My tax advisor told me that, since I contribute to a 401(k), I "cannot have an IRA." He is a strange fellow, often lacking the ability to communicate clearly in non-CPA terms. He insists that I cannot have an IRA at all. I think he means that I cannot use an IRA to lower my taxable income because I am already using the 401(k) to do that. Again, who, if either of us, is correct? And either way, wouldn't any IRA contributions on top of the 401(k) contributions need to be a traditional IRA?