Money in both 401k - IRA Roths

[Bruno]

I retired this year and I had paid in $4500 to my company's Fido 401k roth. I have since then converted my 401k holding at Fido to a IRA and now have a IRA roth. I was once told that you could put money into both 401k and IRA roth if you met certain guidelines. Fido shows i can put $7k into my 2019 IRA roth.

Does this sound right?

[Qs Laptop]

Quote:

Originally Posted by Bruno I retired this year and I had paid in $4500 to my company's Fido 401k roth. I have since then converted my 401k holding at Fido to a IRA and now have a IRA roth. I was once told that you could put money into both 401k and IRA roth if you met certain guidelines. Fido shows i can put $7k into my 2019 IRA roth. Does this sound right?

Yes. If you are over age 50 you may contribute up to $7,000 into your IRA. That's $7,000 total per person, not $7,000 per IRA.

For example, if you had both a traditional IRA and a Roth IRA you could put $5,000 in the traditional IRA and $2,000 in the Roth. You cannot put $7,000 in the traditional IRA and $7,000 in the Roth.

[kaneohe]

I believe so. The conversion does not affect the amount of original contribution you can make to the Roth IRA so if you have enough taxable compensation , you can do the 7K contribution.

[Sunset]

To be clear, if you have enough earnings and a spouse, then both of you can put $7K into their own Roth based on your earnings, even if the other person does not have earnings.

[Qs Laptop]

Re-reading the OP I see lots of opportunity for confusion.

It could be Bruno converted the $4,500 in his 401k into a trad IRA and is asking if he can now contribute $7,000 into his Roth IRA.

OR

Bruno is asking since he converted $4,500 in his 401k into an IRA (we don't know if it was a trad IRA or a Roth IRA) can he now contribute $7,000 into that IRA?

OR

Bruno is asking since he converted $4,500 from his 401k into an IRA, is he limited to contributing $2,500 into that same IRA?

I guess I don't really know what he's asking. Clarification would help.

[Bruno]

Quote:

Originally Posted by Qs Laptop Re-reading the OP I see lots of opportunity for confusion. Sorry I am also confused. It could be Bruno converted the $4,500 in his 401k into a trad IRA and is asking if he can now contribute $7,000 into his Roth IRA. I am over 66. At work I had a 401k IRA and Pre Tax 401k Roth. In July I retired and converted both 401k accounts to a IRA and Roth IRA in 2019. I had paid in $4500 to the 401k Roth in 2019. Is there a limit on what i can contribute in 2019 to my Roth IRA. Is it like $7000 - $4500 my total I can put in is $2500. I guess I don't really know what he's asking. Clarification would help.

All this Roth conversion is something i am trying to figure out. If i got cash laying around that the taxes are paid can that go into a roth of does it have to be IRA money? I know there is not supposed to be any stupid questions but what do they say about dumb people

[NgineER]

Bruno, your roth IRA contribution is independent of your Roth 401k contribution or rollovers. You will most likely be able to contribute $7k, but you could be limited due to your income.