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Is there a maximum amount that can be rolled over from a 401(k) into an exisitng IRA once I leave my job? Also, once the 401(k) is rolled over will I still be able to contribute to my IRA for the year?
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s there a maximum amount that can be rolled over from a 401(k) into an exisitng IRA once I leave
my job? Also, once the 401(k) is rolled over will I still be able to contribute to my IRA for the
year?


Hi Paul, I am not a true TMF Guide, just earning my keep as a fellow questioner here! Someone else needs to verify about rolling into existing IRA, but I don't think there is a limit. And YES, you can still contribute another 2K to your own IRA for this year from this year's earned income. You can also contribute another 2K to a spouse's IRA if you have at least 4K earned income between you, even if spouse is unemployed. Get confirmation from someone here. I"m just trying to help out. meowiz
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There is no maximum amount or limit on rolling over from a 401(k) to an IRA. However, typically, people DO NOT rollover their 401(k) monies into an "existing" IRA; instead one should create a seperate Rollover or Conduit IRA account. The reason for this is to keep the monies segregated, e.g. if rollover monies are co-mingled with contributory IRA monies then, at a later date, should you become employed by a new employer who has a 401(k) plan, the co-mingled monies can not rolled into the new plan; whereas the original 401(k) monies, if kept segregated can be rolled into the new plan.

A rollover from your 401(k) plan to a coonduit IRA, is unrelated to your ability to make IRA contributions, of any type, in the current year.

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Paul5873 asks:

<<Is there a maximum amount that can be rolled over from a 401(k) into an exisitng IRA once I leave my job? Also, once the 401(k) is rolled over will I still be able to contribute to my IRA for the year?>>

You may transfer an unlimited amount of money from an employer's qualified retirement plan like a 401k to an IRA. That transfer has no effect on your ability to make your annual IRA contribution of up to $2K for that year, either. As TheBadger pointed out, though, you may want to use a new rather than an existing IRA for this purpose. Doing so will preserve your ability to later transfer that rollover money plus any of its earnings to a new employer's 401k plan that accepts money from an old employer's plan. For details, see my discussion of "conduit" IRAs in my Foolish Retirement Plan Primer at http://www.fool.com/Retirement/Retirement.htm .

Regards….Pixy
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