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goodnewsforyou
Level 2

Last year, I did not reach my max allowed amount for the 401K as I lost my job. Now I want to contribute to it. How can I add to my last year's 401K?

 
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Opus 17
Level 15

Last year, I did not reach my max allowed amount for the 401K as I lost my job. Now I want to contribute to it. How can I add to my last year's 401K?

Sorry, you can't. By law, a 401(k) is an employer-sponsored plan and only the employer can make contributions (including employee contributions via a salary reduction agreement.)   You may be able to contribute to a traditional or Roth IRA depending on your income, but those limits are lower, of course.    (If you had lower than expected income for 2019 due to a job loss, you might have more eligibility to contribute to a Roth IRA than you originally planned.  See here for the limits https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

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

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2 Replies
Opus 17
Level 15

Last year, I did not reach my max allowed amount for the 401K as I lost my job. Now I want to contribute to it. How can I add to my last year's 401K?

Sorry, you can't. By law, a 401(k) is an employer-sponsored plan and only the employer can make contributions (including employee contributions via a salary reduction agreement.)   You may be able to contribute to a traditional or Roth IRA depending on your income, but those limits are lower, of course.    (If you had lower than expected income for 2019 due to a job loss, you might have more eligibility to contribute to a Roth IRA than you originally planned.  See here for the limits https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

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

View solution in original post

goodnewsforyou
Level 2

Last year, I did not reach my max allowed amount for the 401K as I lost my job. Now I want to contribute to it. How can I add to my last year's 401K?

Unfortunately, yes. After a lot of searching, I found that only if you have self-employment income can you add to the previous year's 401K. Thanks,

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