No. of Recommendations: 0
I know that I can not contribute to both a Roth and a Traditional IRA in the same year.

Actually you can--but the aggregate total of your contributions to Traditional and Roth IRAs cannot exceed the annual limit ($3,000 in 2004, $3,500 if 50 or older by December 31, 2004).

My question is whether I could roll over my 401k into a traditional IRA, each year and not worry about the tax deduction, and still make my $2000 annual roth contributions?

Yes. A rollover from other qualified plans are not contributions, so rollovers do not count towards the contribution limits.

Note: the vast majority of employer plans don't allow an in-service rollover to a "Rollover IRA" so most employer plans would require that you separate from service (quit, get fired, etc.) before you can move those funds.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.