401K Rollover

CaliQuestions · ‎August 16, 2020

If one maxed out there traditional IRA contribution for 2020 while also putting 5k into their employer 401k plan in 2020, can one rollover the 5k in the 401k into the IRA in 2021 and not have it count against their 6,000 IRA limit?

macuser_22 · ‎August 16, 2020

A 401(k) rollover into a IRA is NOT a new contribution and there are no limits on how much can be rolled over. however, most 401(k) plans prohibit any rollovers prior to retirement or end of employment - check with the plan administrator.

**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.**

Opus 17 · ‎August 28, 2020

In most cases, you can't move money out of a 401(k) when you are still employed with the sponsoring employer. You can roll over or transfer funds if you quit, are terminated, or are fired. Some employers may allow a hardship withdrawal, but you can't use hardship as a reason to do a rollover.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*