401k rollover questions?
401k rollover questions?
I have the following retirement accounts; Traditional, Roth, SEP IRA, as well as 401k account from my previous employer. My question is;
1. If I rollover my 401K to SEP-IRA, can I still contribute 20% of my self-employment income to SEP-IRA? (Does my rollover counts towards this limit?) Also, if I do the roll-over, can I deduct the roll-over amount when I file my taxes next year?
2. What if I roll-over my traditional IRA to SEP-IRA?
Please let me know. Thanks!
Answers:
Chosen Answer
digdowndeepnseattle: rollovers do not count as contributions. they are transfers. You can't deduct them no matter what you do. Only thing that happens is that you declare them on your 1040 (line 16a) and then declare them to be non-taxable on 1040 (line 16b). At that point the govt computers scan the databasefor rollover institutions (receiving institutions notify IRS of amount and SSN) and the IRS will note any differences and flag for possible audit if they don't match. Answer is same for #1 and #2
2008-11-03 15:24:07
digdowndeepnseattle: rollovers do not count as contributions. they are transfers. You can't deduct them no matter what you do. Only thing that happens is that you declare them on your 1040 (line 16a) and then declare them to be non-taxable on 1040 (line 16b). At that point the govt computers scan the databasefor rollover institutions (receiving institutions notify IRS of amount and SSN) and the IRS will note any differences and flag for possible audit if they don't match. Answer is same for #1 and #2
2008-11-03 15:24:07