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View Full Version : Are any contributions mandatory for IRA's ?


Dbltrbl1976
Dec 22, 2010, 03:28 PM
I am rolling over my 401k into an IRA, Maybe a Roth but I am wondering if I have to contribute money each month or does it use my original rollover amount each month?

Thanks for your time,

Sincerely,
Michele

ebaines
Dec 22, 2010, 03:39 PM
Contributions are not mandatory to an IRA. You can make additional contribiutions whenever you desire, up to the limit of $5K/year ($6K if you are 50 or older).

I don't understand what you mean about an "original rollover amount each month" - please clarify. Remember that a roll-over is a one time event, where you transfer your 401(k) account assets into a new rollover IRA account. Once the assets are rolled over, the original 401(k) account is considered closed.