Teaching My Money To Sit Up And Beg Comes Next
October 14, 2013 4:37 AM   Subscribe

I had two orphan 401(k) plans from old jobs that I rolled over into my (traditional) IRA this year. When I do my 2013 taxes, do I count those as part of my IRA contribution for the year?

I tried Googling this, but the results I got were a) inexact (they talked about rolling an IRA into a 401(k) instead) or b) confusing as shit (I am just barely above the "money in a sock under the mattress" level of financial conceptualizing).
posted by EmpressCallipygos to Work & Money (8 answers total) 1 user marked this as a favorite
No they are not contributions
posted by JPD at 4:46 AM on October 14, 2013

Nope. You already got the deductions when you contributed the money into the plan. They're neutral. No deductions, no taxes.
posted by Ruthless Bunny at 5:22 AM on October 14, 2013

The rollovers have no impact on your taxes at all.
posted by COD at 6:13 AM on October 14, 2013 [1 favorite]

Best answer: The money that you move from the old 401(k) accounts to the traditional IRA does not count toward your annual contribution limit. However, the instructions for Form 1040 (income tax return) ask that you write in the rollover amount on the IRA contribution line. So you write your contribution amount for the year in the little boxes for the numbers, but you jot in the additional rollover amount in the line with the words. To emphasize - you are not adding those numbers together. I hope that makes sense without the form in front of you. The instructions are pretty clear come tax season.
posted by stowaway at 6:33 AM on October 14, 2013

Response by poster: I actually use Turbo Tax (I actually screwed up the 1040 EZ form once, and Turbo Tax is even more idiot-proof).

Thanks - I try to contribute about a grand each year, and didn't know whether I could get away with my rollover being "it".
posted by EmpressCallipygos at 7:05 AM on October 14, 2013

No, rollovers are not contributions.
posted by zippy at 10:12 AM on October 14, 2013

No. As long as you prove that the money from your 401(k)s was rolled over into your IRA in its entirety within (I think) 30 days after you got the check from the investment firm(s).
posted by tckma at 12:47 PM on October 14, 2013

Response by poster: Oh, I've been having the 401(k) people send the check directly to my IRA bank. I don't even get in the middle.

I always pretend any of the money in my IRA or my 401(k) is money that doesn't exist, and then when I turn 70 I will magically get a very nice present.
posted by EmpressCallipygos at 1:18 PM on October 14, 2013

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