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).
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).
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
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]
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
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
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. 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
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
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
This thread is closed to new comments.
posted by JPD at 4:46 AM on October 14, 2013