2018 & 2019 Employer 401K Contributions
Hi – I just realized that I did not contribute the maximum amount allowed into my company 401K in 2018 and 2019. Is there anyway for me to contribute into my 401K for 2018 and/or 2019 now? If not is there anyway for me contribute to my personal IRA but have it count towards my 2019 year? I have not filed my 2019 taxes yet and I could really use a way to lower my income or have more deductions for 2019. Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2020-06-11 21:54
You cannot add to your 401k at this point for 2018 or 2019. While you can make an IRA contribution for 2019 up to 7/15, since you were a 401k participant in 2019 you are subject to an income limit to deduct the contribution. If over the limit, your contribution will be non deductible and before making a non deductible contribution you should check your modified AGI for the higher Roth contribution limit. What is your tax filing status for 2019?
Permalink Submitted by Kevin WOlter on Thu, 2020-06-11 23:38
Thank you for the quick reply!I think you might have helped me with some other questions just last night.My filing status for 2019 is single, live in CA and my total income was around 220K.I have not filed 2019 yet.However, this year 2020, I did open a traditional IRA and a self directed IRA using funds from an old emplyer 401k.
Permalink Submitted by Alan - IRA critic on Thu, 2020-06-11 23:49
OK, then the post to the other thead applies. Only possible contribution is a non deductible TIRA contribution which could not be converted to Roth without paying taxes on nearly the entire conversion amount. Unless you decided to roll the other IRAs into the 401k (if the plan would even accept IRA rollovers), rather than making the non deductible contribution, you would be better of to just save outside of retirement accounts. To prevent this situation in 2020 as well, perhaps you can increase your 401k contributions.
Permalink Submitted by Kevin WOlter on Fri, 2020-06-12 00:30
Okay, thank you for all of the replies. This is very helpful and I appreciate it. As you explained, I will just be saving outside of a retirment account.