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@SLYKTAX wrote:

Five questions I need to ask the experts here.

1. 401K is a pretax retirement account similar to a Traditional IRA account . Why people talk about converting his 401K to Traditional IRA Account when both work the same?

2. I retired on12/2020 from a local government with a buyout and $70K is only due for payment by the end of this year (2021).  I have already rolled over all my 457 retirement account to a Rollover IRA  Account in SCHWAB.  If I get my W2 form for the $70K,  can I contribute the maximum to my Rollover IRA for 2021 and also contribute $7,000 to ROTH?

3.  The 60 days limit time frame for conversion.  Does that mean I have 60 days to decide whether to contribute to IRA once I get  the payout or not?

4.  As I have retired, can I still contribute to ROTH and IRA if I get my W2 form for the $70K?

5. IRA conversion to ROTH.  Does the 60 day limit means I can take my IRA distribution in 12/31/2021 and have another 60 days to decide to convert it to my ROTH IRA? Can I return the distribution if my AGI take me to a higher tax bracket?

 

Thanks

 

 

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#2, 

The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

For 2019 and 2020, $6,000, or $7,000 if you’re age 50 or older by the end of the year.   You must have at least as much taxable compensations as the total contribution.

#3 Makes no sense.  The 60 day limit is to be able to rollover or convert an IRA distribution.

#4 Yes as long at the total contributions do not excess the yearly limit as state in #2.

#5 As stated in #3 you have 60 days from the date of a IRA distribution to either roll it back of convert it, but do not wait the entire 60 days because that counts the time the financial institution takes to post it with is usually 3 business days or the IRS could disallow it.