401K and HSA Employer Rollover Max Contributions following retirement

Submitted by Steve Schultz on Sat, 2020-06-13 17:39

Retired in March 2020 at 59.5 yo.. Earned income and commissions of >$100k. I contributed ~$19K to company 401K & $2,500 to HSA (company contributed $1,000) . Rolled over the entire 401K and HSA to self directed accounts.
My question:
1. Can I contribute to each self directed account to max out in 2020
401K/IRA = $7K ($26K-19K)
HSA = $4,600 ($8,100-$3,500)

2. If so, by what date for each – December 31, 2020 or March 31, 2021?

Thanks Steve



Submitted by Alan - IRA critic on Sun, 2020-06-14 02:07

  1. You cannot contribute any more to the 401k, but if you have not made a 2019 or 2020 IRA contribution, you can do that up to 7000. Since your salary stopped in March, perhaps your 2020 MAGI will be low enough for a deductible TIRA contribution, or if not for a Roth contribution. If also too high for a Roth contribution, your only remaining IRA option is a non deductible TIRA contribution. You could do a back door Roth if you have no pre tax TIRA balance already and if your income is too high for a regular Roth contribution. You have until 4/15/2021 to make a 2020 IRA contribution, and for 2019 the deadline is 7/15/2020.
  2.  Your HSA max contribution depends on how many months in 2020 you will be covered by a qualified HDHP plan. The HSA max is pro rated by the number of months you have such coverage as of the 1st day of each month. The 8100 limit would require you to be covered for all 12 months of 2020 (or under the last month rule, on 12/1/2020). The 2020 deadline for eligible HSA contributions is 4/15/2021.


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