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.
2007-10-16 05:55:06 · 5 answers · asked by julie.spouse 1 in Business & Finance ➔ Personal Finance
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.
2007-10-16 06:23:53 · answer #1 · answered by dfrank04401 3 · 0⤊ 0⤋
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.
2007-10-16 06:50:47 · answer #2 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
The max is 4000K for both, but the limit changes yearly. As next year it might be higher. Stay up to date with the figures. Both IRA's will always have them same caps. The only differences between the two deals with taxes. If you are young I recommend Roth IRA. Accountant 2 Years
2016-05-22 23:04:32 · answer #3 · answered by felipa 3 · 0⤊ 0⤋
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.
2007-10-16 07:03:07 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
You don't have to contribute.
2007-10-16 06:25:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋