Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I just change employer. I had 401K with my previous employer for 6 months in 2001. If I choose not to participate in 401K at my current/ new employer, can I still invest in IRA Traditional for Year 2001?
Thanks
Print the post Back To Top
No. of Recommendations: 0
I just change employer. I had 401K with my previous employer for 6 months in 2001. If I choose not to participate in 401K at my current/ new employer, can I still invest in IRA Traditional for Year 2001?
Thanks


No. The contributions from the previous employer kills it.
Print the post Back To Top
No. of Recommendations: 0
When you leave your old job, to avoid taxation on the contributions to the 401k from the previous employer you have two choices:

1. Rollover your 401l to your new employer's 401k plan, or

2. Rollover your 401k balance into a traditional IRA. Have a trustee transfer it for you so you won't have the mandatory 20% withheld if you receive it first.
Print the post Back To Top
Advertisement