USA Defer Taxes with IRA when I also have a 401k?

[Sdgregc]

I have a 401K that I max out every year.

I would like to do some hobby-level investing. My brother-in-law said he uses a dedicated IRA account to allow him to do trading without having to track / report all the tax implications every year.

Can I use a similar approach? My assumption would say any money I deposit initially into the IRA would NOT be tax deductible. And any profits I make would be taxable. Ultimately in the end I would need to reconcile expenses / purchase price vs sell / etc., to determine my final tax liability.

Assume that would be at the time of withdrawl?

Mainly just looking to avoid the hassle of netting tax implications out every year on my taxes. Figuring I would still have to report that I have the IRA in play.

Is that approach possible if I have a 401k?

Any other things I should consider?

Thanks.

 

[DrStrangeLove]

Any other things I should consider?

Consider talking to a certified financial planner instead of your brother-in-law.

 

[Sdgregc]

Consider talking to a certified financial planner instead of your brother-in-law.

Not helpful.