IRA Rollover

Posts Tagged ‘401k Rollover’

Question: Can I contribute to a Rollover IRA?

I have a Roth IRA. I also have a Rollover (traditional) IRA that I set up with funds from a previous employer’s 403b plan. Based on my tax rate I would prefer to stop contributing (for now) to the Roth and take advantage of immediate tax savings by contributing to a traditional IRA. Can I simply make contributions to the Rollover IRA as if it were a regular IRA?

Answer: You can, but you might want to keep the rollover IRA separate. As long as you keep the rollover IRA separate, it can serve as a conduit IRA. Later, if you go to work for another organization that offers a 403b, you can transfer the amount in your rollover IRA to the new 403b plan.

It’s nice to keep your options open.

You can establish a separate, traditional IRA if you wish.

Roll-Over IRAs