401k contributions and buy out
Hi Terry,
I will be taking an early retirement from my company that will be effective end of June. As part of the retirement package, I will be paid through December. However, I cannot contribute to my 401k, via my paycheck, after the official retirement date of June 30. Can I make contributions after that date, on my own, to an IRA? Trying to reduce my yearly taxable income and add to my retirement funds.
Terry Says
First, ask HR if you can double your payments up until the date of your retirement — especially if there is a match! And you can open a Roth IRA and make a contribution subject to income levels. for 2020, as a single filer, you can make a full $6,000 ($7000 over age 50)contribution to a Roth IRA if your modified adjusted gross income is less than $124,000 in 2020. For 2021, you can make a full contribution if your modified adjusted gross income is less than $125,000.
