Can I transfer $ in a rollover IRA to my Roth IRA to meet my yearly Roth IRA contribution of $8000?

Forum|Forum|2 years ago
January 13, 2024
2 replies
0 views

Hello,

I am 66 (and retired) and in 2023, I transferred all the money (~200k) in my employer sponsored 401k and 4757b to a "rollover" IRA at Fidelity. I wanted to make my yearly contribution to my Fidelity Roth IRA for 2024, and was wondering if I can use funds from the rollover acct ? The funds in my rollover IRA are pre-tax, so I'm not sure if there is a way to do this? thanks for any help - appreciate it! Steve

Best answer by VolvoGirl

You can convert from a Traditional IRA to a ROTH IRA. But it would not be a new contribution. It would be taxable and not a deduction. You make a contribution from new money from your bank account etc. And you need earned income from working and W2 or a net profit from self employment to contribute.

VolvoGirlAnswer

Employee

Opus 17

Employee

You can’t make any new contributions to a traditional or Roth IRA unless you have compensation from working.

You can rollover part or all of your pre-tax IRA to a Roth IRA, this is called a conversion, and you will pay income tax on the converted amount. Conversions are not contributions and there is no dollar limit on conversions other than the tax you can afford to pay.

SJH57Author

thank you for your response - looking ahead, I have a pension plan that pays monthly - will this allow me to contribute to my Roth IRA, or is that not considered income?