[allinone]

Hello everybody,

Is it possible to add funds to rollover IRA?

Thanks

[KISS]

Rolled over from what?

If the IRA is traditional or Roth then maybe. The bank may not allow you to do so if the IRA is a CD. You may have to wait until maturity of the CD to add.

[morgaine300]

Yes, you can add contributions to it as long as you're still within the annual limits. And it won't matter where it was rolled over from. Contributed funds and rolled over funds are now just lumped.

I took it that you were asking this from a tax perspective. What you're allowed to do within your fund is an entirely different issue and is up to wherever you have the fund at. But that's got nothing to do with what the tax rules are.

[allinone]

Rolled over from what?

From 401K. If yes, how much?
Thanks

[ebaines]

Allinone - you can not make any additional contributions to your rollover IRA except for additional rollovers from other 401(k) plans or other retirement accounts you may have. The problem is that you don't want to mingle accounts funded by your old 401(k) with funds for a traditional IRA. Instead, simply set up a separate new IRA account for your traditional IRA.

If you do have another 401(k) you want to add to your existing rollover IRA, no problem - there is no limit as to how much you can roll over.

[morgaine300]

you can not make any additional contributions to your rollover IRA except for additional rollovers from other 401(k) plans or other retirement accounts you may have.

I just looked this up and everywhere I went said that yes, this can be done. My impression is that it's a rule that once existed that has been changed.

[ebaines]

I just looked this up and everywhere I went said that yes, this can be done. My impression is that it's a rule that once existed that has been changed.

Morgaine - I believe you are correct - thanks for the correction. I guess what I should have said is that it is recommended that the rollover IRA account be kept separate from the traditional IRA. Reason is complication of record keeping that may result if you mingle them. The traditional IRA may include both pre-tax and after-tax contributions in it, and if someday you ever wanted to roll your IRA to another retirement plan (such as a 401(k) offered by your next employer) the existence of after-tax monies in the IRA would complicate that, since you are not allowed to roll after-tax contributions to a 401(k) plan. Admittedly this is not something that most people need to worry about, but given the ease of establishing accounts and managing them online on your brokers website there's really not any down side to keeping them separate.

[morgaine300]

You mean I was right? Wow, I'm never right against you on this kind of topic. :p

I see your point though - I don't know anything about re-rolling back into a 401k. And I can see keeping things separately. I'm so picky about my record-keeping I could totally see this.

The only down side would be maybe being limited on what can be purchased when it's split, due to minimums and such. Like I have 3 IRA's now, and I'm planning this year to roll some over into a 4th at a different broker. So having to maintain the fee-avoidance minimums for some of the mutual funds is getting to be an issue.

(Though I am mostly planning on dumping a small one and moving it. Just have to find time to decide how I'm rearranging everything.)