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Researching 401K rollover to IRA — IRA info mentions maximum annual contributions. Do I have to contribute?
Question : Researching 401K rollover to IRA — IRA info mentions maximum annual contributions. Do I have to contribute?
My 401K is substantial, was employed for 12 years. Do I have to make annual contributions to a new IRA, once my rollover is established? Can’t the IRA act like a savings account? Is there a minimum contribution amount? I know the max is based on adjusted gross income.
401k rollover
Best answer:
Answer by dfrank04401
You don’t have to make any contributions to an IRA. You can make contributions each year as long as you have earned income. If you are going to rollover your 401k to an IRA you should be all set as long as you don’t work at the company anymore.
Good luck and happy investing.
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#2 written by digdowndeepnseattle 1 year ago
Don’t have to contribute but you may want to. There are some Mutual Fund companies that significantly lower the expense ratios of funds if the account balance is over a certain level. Ex. Vanguard has low expense ratios but Vanguard Admiral Shares are even lower. So depending on your balance and how close you are to that magic mark you may want to contribute…the fee savings (and thus earnings) to your account could more than make up for the contribution.
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No, you don’t have to contribute anything more but you can.
I rolled over a 401k over a year ago and I haven’t contributed anything additional
I do however contribute to two other Roth IRAs though.