- I have 401k from my previous employer, and i have left the job on Aug 2016, and as today I want to rollover my 401k to my traditional IRA then convert traditional IRA into Roth IRA, I did aware that converting from traditional into Roth is a tax event; the question was if I complete these processes before April 15. 2017, on which tax year return I will be taxed on for this rollover? 2016 or 2017?
- another question, I made less than $27,000 in 2016, will be filing as Head of Household. Would i still be able to put $ 5,500 into my roth IRA account and the whole 401k rollover I will be doing from my first question will not have effect on that right ?
Any rollovers done in 2017 will be included in your 2017 tax returns.
The April 18, 2017, IRA deadline is for making a contribution to be counted as a 2016 contribution.
You rollover does not affect the amount you can contribute to an IRA - see https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li.... This page also discusses contribution limits if you are also able to participate in an employer-sponsored retirement plan. Based on the information you have provided, it does appear that you are eligible to make the full $5,500 Roth contribution. You are, in fact, able to make the maximum Roth contribution on or before April 18, 2017, as a 2016 contribution and then make another contribution for 2017 (assuming your income still falls within the guidelines).
Any rollovers done in 2017 will be included in your 2017 tax returns.
The April 18, 2017, IRA deadline is for making a contribution to be counted as a 2016 contribution.
You rollover does not affect the amount you can contribute to an IRA - see https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li.... This page also discusses contribution limits if you are also able to participate in an employer-sponsored retirement plan. Based on the information you have provided, it does appear that you are eligible to make the full $5,500 Roth contribution. You are, in fact, able to make the maximum Roth contribution on or before April 18, 2017, as a 2016 contribution and then make another contribution for 2017 (assuming your income still falls within the guidelines).