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Level 3
posted Apr 2, 2023 4:14:20 PM

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?

0 3 396
3 Replies
Expert Alumni
Apr 2, 2023 4:49:05 PM

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.

Level 3
Apr 2, 2023 8:50:27 PM

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.

 

Expert Alumni
Apr 3, 2023 5:45:56 AM

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.