401k and job change

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goodenyou
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401k and job change

Post by goodenyou »

I am going from ownership to being an employee. For the first 3 months of the year, I am a part owner of a company that has a 401k plan. The remainder of the year I will be an employee. Is it possible to fund my 401k (my current company) to the maximum ($27k with catch up) before I leave and/or possibly fund an after-tax spillover and convert it to Roth (Plan has provision) and then roll it out to an IRA and Roth IRA upon separation, IF I haven't earned $67.5K at the previous employer, but I will earn enough by the end of the year with the new employer? I don't know what the 403b at the new employer is like or what the plan allows, so I want to front-load my contributions in the known plan and roll it to an IRA. In other words, is earned income fungible with respect to contributing to retirement plans since you only report the total deduction on your taxes?

Thanks in advance.
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Duckie
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Re: 401k and job change

Post by Duckie »

goodenyou wrote: Sun Jan 23, 2022 8:11 am In other words, is earned income fungible with respect to contributing to retirement plans since you only report the total deduction on your taxes?
No. The 401k employer will not let you contribute more than you earn.
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