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Level 3
posted Jun 18, 2020 5:55:42 AM

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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1 Best answer
Level 15
Jun 18, 2020 6:49:41 AM

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-limits

2 Replies
Level 15
Jun 18, 2020 6:49:41 AM

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-limits

Level 3
Jun 28, 2020 3:44:47 PM

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,