401 k

Forum|Forum|2 years ago
November 16, 2023
1 reply
7 views

$14,000 is my 401K contribution showing on my w-2 (pre-tax). My trustee company have made a rollover ($14000) to my IRA account opened at their company. $2500 (my retirement plan ) is my second pre-employer made a rollover to my another IRA account opened by another trustee. I don't contribute any money to my IRA account in 2023. $14,000 and $2500 (all of these) are made a rollover by my two pre-employers. If that is the case, how much money I can contribute for the tax year 2023?

Thank you for your reply and your time!

Ask the Experts - Crypto - Nov 2023

emina

Level 5

Hello and thank you for joining us today!

You can roll money from a traditional 401(k) into a rollover Roth IRA, but then you'd owe income tax on the money you rolled over. One main difference between a traditional or Roth IRA and a rollover IRA is that you can roll over as much money as you want into the rollover IRA.

Does my rollover count as a contribution?

No. It is considered separately from your annual contribution limit. So you can contribute additional money to your rollover IRA in the year you open it, up to your allowable contribution limit.

Resource link: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras#Rollovers%20and%20Roth%20Conversions