topic 401 k in Get your taxes done using TurboTax

401 k

yijian — Wed, 15 Nov 2023 18:57:07 GMT

Because my termination of my job, My 401k $11,742.13 contribution in 2023 have made a rollover ( by my trustee company) to my new IRA account at the same trustee . In addition, my another pre-employer also have made a rollover $2500 to my IRA account at another trustee company.

My question is how much can I contribute pre-tax IRA in 2023 or before Apr. 2024 besides the above two rollover activities?

Re: 401 k

Anonymous — Wed, 15 Nov 2023 22:21:47 GMT

Hello yijian,

Thank you for joining us today. If I understand your question correctly, rollovers do not affect the contribution limits for the tax year unless some of those rolled over amounts represent contributions for the tax year.

For example, the IRA contribution limit for 2023 is $6,500 ($7,500 for age 50+) and you had just over $14,000 rolled over into your IRA in 2023. If all that $14,000 was from prior years, then you can still contribute $6,500 ($7,500).

On the other hand, if you already contributed $2,000 and it was part of that $14,000 rolled over, then you can only contribute $4,500 ($5,500) more for the 2023 tax year.

Please note: the answers above were given under the assumption that you have not been reemployed and only address contributions to an IRA. If you have been re-employed, or are self-employed now, things could be different depending on any retirement plans available to you at work and what your income is. Here is an excellent article for further consideration.

I hope that helps.

Re: 401 k

yijian — Thu, 16 Nov 2023 00:09:41 GMT

$2000 is my pre-employer who made that rollover for me. In 2023, I did not contribute any money to my IRA account. $14000 and $2000 are the money made rollover by my two pre-employers.

Re: 401 k

Anonymous — Thu, 16 Nov 2023 00:45:24 GMT

Okay, so if you don't have an employer sponsored retirement plan and meet the income threshold shared in that article, then you are able to contribute up to $6,500 for 2023.