I have a Rollover IRA account I opened years ago (rolled over 401k from an older job).
I just left another job in 2021 and wanted to rollover my 401k funds from this previous job into my current Rollover IRA account. Is there anything I need to consider that would affect taxes? Is it ok to rollover multiple 401ks into the same Rollover IRA account?
I don't have a traditional IRA or a Roth IRA.
Yes, you can add new rollover money from your 2021 job into the IRA.
You DO have a traditional IRA (assuming your 401k was pre-tax). There's nothing different about a rollover IRA except the original source of the money, which doesn't matter for most purposes. (For some purposes, like bankruptcy, it may be advantageous to keep IRA funds from a workplace rollover separate from IRA funds from personal contributions. But for taxes, it doesn't matter. An IRA is an IRA.)
Yes, you can add new rollover money from your 2021 job into the IRA.
You DO have a traditional IRA (assuming your 401k was pre-tax). There's nothing different about a rollover IRA except the original source of the money, which doesn't matter for most purposes. (For some purposes, like bankruptcy, it may be advantageous to keep IRA funds from a workplace rollover separate from IRA funds from personal contributions. But for taxes, it doesn't matter. An IRA is an IRA.)
Thank you for explaining, I always get a little confused! To clarify, are there any tax implications for rolling over another pre-tax 401k into the same IRA?
Thanks again!
@parisrosaries wrote:
Thank you for explaining, I always get a little confused! To clarify, are there any tax implications for rolling over another pre-tax 401k into the same IRA?
Thanks again!
Any traditional IRA (pre-tax) can receive rollover funds from a pre-tax 401(k) or from another pre-tax IRA without tax consequences.
When you roll over workplace funds into an IRA, it is not necessary to keep funds from different workplaces in separate IRAs.