IRA Rollover

Archive for December, 2006

Question: I’m a single filer who has contributed $5,000 to a Roth IRA and $16,500 to an employer sponsored 401k in 2010.?

I’m a single filer who has contributed $5,000 to a Roth IRA and $16,500 to an employer sponsored 401k in 2010. My salary will be 45K in 2010. Does anybody know if I’ve surpassed any contribution limits? Also, can I rollover that $16,500 into a rollover IRA when I leave my present employer this calendar year? If so, can I roll it over into a Roth IRA with exceeding any limits?
Thanks!

Answer: You’re fine. I made the exact same contributions.

You can roll your 401k into a Traditional IRA without paying taxes. If you roll it into a Roth IRA, you will have pay ordinary income taxes on the balance as of the date of the roll over.

Rollovers do not count towards annual contribution limits.

Roth IRAs in 2010 Part 4