Maximize 401(k) contribution

Forum|Forum|3 years ago
April 2, 2023
1 reply
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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?

SharonD007

Level 14

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

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.

MinhT1

Level 15

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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