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Level 3
Apr 2, 2023 11:14 PM UTC
Question

Maximize 401(k) contribution

I have both a regular and Roth 401(k). I was unemployed in 2022 and didn't maximize my contributions to my 401(k). 

Is it possible to make some kind of "catch-up" contribution and it will influence my 2022 return?

    3 replies

    SharonD007
    Alumni - Intuit
    Apr 2, 2023 11:49 PM UTC

    No, if you did not have earned income, you will not be able to make contributions or catch-up contributions to your retirement accounts. If you have earned income in 2023, you may be able to make catch-up contributions for 2023. If you are age 50 or older, you are permitted to make annual catch-up contributions to your 401(k)s and individual retirement accounts (IRAs). You must reach your plan’s contribution limits before you make catch-up contributions.

     

    For more information please review the IRS Retirement Topics - Catch-Up Contributions and TurboTax article End of Year Retirement Tips.

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    goodglarpAuthor
    Level 3
    Apr 3, 2023 3:50 AM UTC

    Thanks for the reply.

    But to clarify, we did have earned income in 2022, just not full income during the 5 months I was unemployed.

     

    Alumni - Intuit
    Apr 3, 2023 12:45 PM UTC

    For your regular and Roth 401(k), you cannot make any more contributions to these plans for 2022 after December 31, 2022.

     

    You are considered as covered by a retirement plan at work for tax year and you may be eligible to make a deductible contribution to a Traditional IRA if your filing status and your MAGI allow, according to this IRS document.

     

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