@Yc6vo4c12Mmz wrote:
Just to make sure I understand what you’re saying, I effectively distributed my Roth 401k early as income and made a voluntary contribution to a Traditional 401k using that income. The old Roth money will be taxed when it leaves the traditional 401k later.
Is this accurate?
Thank you for helping me understand!
No. That is not permitted by law. Roth money has already been taxed so it can never be placed into a before tax retirement plan such as a Traditional 401(k), but 401(k) contributions can only be done by your employer and are reported on your W-2 in box 12. You seem to be confusing a 401(k) and a IRA.
If an IRA That would not be a permissible rollover, but a new contribution, subject to the IRA contribution limits that can only come from "taxable compensation" (money you worked for - W-2 wages or net self-employed income usually) and cannot exceed $6,000 ($7,000 if over age 50) for all IRA contributions).
Any IRA contribution that does not meet those rules is an excess contribution subject to penalties that repeat each year until removed. No IRA account trustee should have permitted an excess contribution in the first place.
I am still not clear as to what types of accounts are actually involved here.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
