Author Topic: 401k Contributions after you left work?  (Read 1235 times)

Exflyboy

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401k Contributions after you left work?
« on: February 04, 2014, 09:55:36 AM »
Hi all,

So I recently quit but my previous employer gave me a severence package. Bottom line my income for 2014 will kick me above the 15% tax bracket.

Is there a way that I can contribute pretax money (say all my rental income) into a 401k type of account and thus reduce my income?

Thanks

Frank

matchewed

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Re: 401k Contributions after you left work?
« Reply #1 on: February 04, 2014, 09:59:06 AM »
First option is just a traditional IRA.

Second option would be (I am by no means an expert in this area) but if your rental income was through a business I believe you'd be eligible for other tax deferred retirement accounts than an IRA.

Exflyboy

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Re: 401k Contributions after you left work?
« Reply #2 on: February 05, 2014, 03:03:17 PM »
A bit of good news.

I "foolishly" contributed my $6500 contribution for 2014 to my ROTH IRA.. Thus not being able to reduce my AGI to lower ourselves back into the 15% tax bracket.. I did this on Monday

I just called Vanguard and screamed "Investor's remorse"!

No problem they did what is called a re-chararcterisation.. I.e yanked my $6500 from the Roth and stuck it in a new traditional IRA.

My wife will also open a trad IRA this evening,.. This will reduce out AGI by $12,000.

I think this will put us back in 15%...:)

Frank