I have a Simple IRA through my employer which provides me an annual $12,000 contribution limit. From my research, this account works similarly to a Traditional IRA.
I have a lot of excess income and am interesting in also opening a Roth IRA.
I am wondering what the contribution limits are when I have both accounts?
I know that if you have both a Traditional IRA and Roth IRA you cannot exceed the $5,500 limit combined between both accounts (bummer).
But I read on fool.com that this limitation does not apply to a Simple IRA + Roth IRA combination! (http://fool.com/money/allaboutiras/allaboutiras04.htm
) - read the ordered list right before the first example.
Is this true? Would this mean I could max out a Simple IRA at 12K a year while also maxing out a Roth IRA at 5.5K a year? I'm hoping to get confirmation, I've not found much information regarding this subject in my searches.