Can I Roll Over or Transfer Amounts from Other IRAs or Employer Plans If properly executed, you are allowed to roll over a distribution from one Traditional IRA to another without tax penalty. Rollovers between Traditional IRAs may be made once every 12 months and must be accomplished within 60 days after the distribution. Beginning in 2015, just one 60 day rollover is allowed in any 12 month period, inclusive of all Traditional, ▇▇▇▇, SEP, and SIMPLE IRAs owned. Under certain conditions, you may roll over (tax-free) all or a portion of a distribution received from a qualified plan or tax-sheltered annuity in which you participate or in which your deceased spouse participated. In addition, you may also make a rollover contribution to your Traditional IRA from a qualified deferred compensation arrangement. Amounts from a ▇▇▇▇ ▇▇▇ may not be rolled over into a Traditional IRA. If you have a 401(k), ▇▇▇▇ 401(k) or ▇▇▇▇ 403(b) and you wish to rollover the assets into an IRA you must roll any designated ▇▇▇▇ assets, or after tax assets, to a ▇▇▇▇ ▇▇▇ and roll the remaining plan assets to a Traditional IRA. In the event of your death, the designated beneficiary of your 401(k) Plan may have the opportunity to rollover proceeds from that Plan into a Beneficiary IRA account. In general, strict limitations apply to rollovers, and you should seek competent advice in order to comply with all of the rules governing rollovers. Most distributions from qualified retirement plans will be subject to a 20% withholding requirement. The 20% withholding can be avoided by electing a “direct rollover” of the distribution to a Traditional IRA or to certain other types of retirement plans. You should receive more information regarding these withholding rules and whether your distribution can be transferred to a Traditional IRA from the plan administrator prior to receiving your distribution.
How Much May I Contribute to a ▇▇▇▇ ▇▇▇ As a result of the Economic Growth and Tax Relief Reconciliation Act (“EGTRRA”) of 2001, the maximum dollar amount of annual contributions you may make to a ▇▇▇▇ ▇▇▇ is $5,500 for tax years beginning in 2013 with the potential for Cost-of-Living Adjustment (COLA) increases in $500 increments. However, these amounts are phased out or eliminated entirely if your adjusted gross income is over a certain level, as explained in more detail below. Year 2020 2021 ▇▇▇▇ ▇▇▇ Contribution Limit $6,000 $6,000 You may make annual contributions to a ▇▇▇▇ ▇▇▇ in any amount up to 100% of your compensation for the year or the maximum contribution limits shown in the table above, whichever is less. The limitation is reduced by any contributions made by you or on your behalf to any other individual retirement plan (such as a Traditional IRA) except SEP IRAs and SIMPLE IRAs. Your annual contribution limitation is not reduced by contributions you make to a ▇▇▇▇▇▇▇▇▇ Education Savings Account that covers someone other than yourself. In addition, qualifying rollover contributions and transfers are not subject to these limitations. If you are age 50 or older by the end of the year, you may make additional “catch-up” contributions to a ▇▇▇▇ ▇▇▇. The “catch-up” contribution limit is $1,000 for tax years 2009 and beyond. If you are married and file a joint return, you may make contributions to your spouse’s ▇▇▇▇ ▇▇▇. However, the maximum amount contributed to both your own and to your spouse’s ▇▇▇▇ ▇▇▇ may not exceed 100% of your combined compensation or the maximum contribution shown in the table above, whichever is less. The maximum amount that may be contributed to either your ▇▇▇▇ ▇▇▇ or your spouse’s ▇▇▇▇ ▇▇▇ is shown in the table above. Again, these dollar limits are reduced by any contributions made by or on behalf of you or your spouse to any other individual retirement plan (such as a Traditional IRA) except SEP IRAs and SIMPLE IRAs. Again, the limit is not reduced for contributions either of you make to a ▇▇▇▇▇▇▇▇▇ Education Savings Account for someone other than yourselves. As noted in Item 1, your eligibility to contribute to a ▇▇▇▇ ▇▇▇ depends on your AGI (as defined below). The amount that you may contribute to a ▇▇▇▇ ▇▇▇ is reduced proportionately for AGI which exceeds the applicable dollar amount. For the 2020 and 2021 tax years, the amount that you may contribute to your ▇▇▇▇ ▇▇▇ is as follows: Single Individual Year Eligible to Make a Contribution if AGI is Less Than: Eligible to Make a Partial Contribution if AGI is Between: Not Eligible to Make A Contribution if AGI is Over: 2020 $124,000 $124,000 - $139,000 $139,000 2021 & After - sub- ject to COLA increases $125,000 $125,000 - $140,000 $140,000 Married Individual Filing a Joint Income Tax Return Year Eligible to Make a Contribution if AGI is Less Than: Eligible to Make a Partial Contribution if AGI is Between: Not Eligible to Make A Contribution if AGI is Over: 2020 $196,000 $196,000 - $206,000 $206,000 2021 & After - sub- ject to COLA increases $198,000 $198,000 - $208,000 $208,000 If you are a married taxpayer filing separately, your contribution phases out over the first $10,000 of AGI, so that if your AGI is $10,000 or more you may not contribute to a ▇▇▇▇ ▇▇▇ for the year. Note that the amount you may contribute to a ▇▇▇▇ ▇▇▇ is not affected by your participation in an employer-sponsored retirement plan. To determine the amount you may contribute to a ▇▇▇▇ ▇▇▇ (assuming it does not exceed 100% of your compensation), you can refer to IRS Publication 590-A: Modified Adjusted Gross Income for ▇▇▇▇ ▇▇▇ Purposes and Determining Your Reduced ▇▇▇▇ ▇▇▇ Contribution Limit. The amount you contribute may not exceed the maximum contribution limits shown in the table above reduced by the amount contributed on your behalf to all other individual retirement accounts (except SEP IRAs and SIMPLE IRAs). Your contribution to a ▇▇▇▇ ▇▇▇ is not reduced by any amount you contribute to a ▇▇▇▇▇▇▇▇▇ Education Savings Account for the benefit of someone other than yourself. If you are the beneficiary of a ▇▇▇▇▇▇▇▇▇ Education Savings Account, additional limits may apply to you. Please contact your tax advisor for more information.