Rollover IRA contribution for 2018

[bilges]

What is the name of your state? VA

I am a little confused about the how much one can contribute to Rollover IRA for 2018. I already maxed out on pre-tax/Roth contribution of $19k and wonder if Rollover IRA investment makes sense (or even possible) for joint filers with MAGI ~$200k?

Thanks.

 

[Taxing Matters]

What is the name of your state? VA

I am a little confused about the how much one can contribute to Rollover IRA for 2018. I already maxed out on pre-tax/Roth contribution of $19k and wonder if Rollover IRA investment makes sense (or even possible) for joint filers with MAGI ~$200k?

Thanks.

A rollover contribution is a transfer of funds from another IRA or other qualified retirement plan to the IRA. Not all qualified retirement plans can be rolled over into an IRA. Exactly what roll over did you have in mind?

 

[bilges]

A rollover contribution is a transfer of funds from another IRA or other qualified retirement plan to the IRA. Not all qualified retirement plans can be rolled over into an IRA. Exactly what roll over did you have in mind?

Fidelity is allowing me to transfer up to $5500 from a bank account to the rollover IRA account for 2018 but not to the Roth account. Wondering if that is an error or I can actually make that investment.

 

[LdiJ]

Fidelity is allowing me to transfer up to $5500 from a bank account to the rollover IRA account for 2018 but not to the Roth account. Wondering if that is an error or I can actually make that investment.

There is no such thing as a rollover IRA account. You may have an IRA account that you rolled money over into at some time in the past, but it is not called a "rollover" account.

Fidelity also cannot be allowing you to "transfer" up to $5500 from a bank account but you might be able to contribute $5500 to an IRA.

Your wording is confusing and could cause you to get inaccurate answers.

 

[bilges]

Sorry, let me rephrase. If the gross family income is $198k, annual contribution to traditional 401k (pre-tax) is $8k, and $10.5k for Roth 401k -

1. Can both spouse and I contribute $5500 each to traditional IRA account without any penalties? Fidelity named the IRA account "Rollover IRA" so I was confused. Assuming yes since Fidelity is allowing me to do so in the simulator.

2. If the answer to #1 is yes - does it make sense to do so since there will be almost no tax deductions? This is more of investment advice.

3. Is Roth IRA an available option in this situation? Fidelity is not allowing me to make a contribution over $700 in the simulator, irrespective of whether I choose to do #1 or not. Is that because the income is too close to upper phase-out limit?

Hope these questions make sense - thanks.

 

[LdiJ]

Sorry, let me rephrase. If the gross family income is $198k, annual contribution to traditional 401k (pre-tax) is $8k, and $10.5k for Roth 401k -

1. Can both spouse and I contribute $5500 each to traditional IRA account without any penalties? Fidelity named the IRA account "Rollover IRA" so I was confused. Assuming yes since Fidelity is allowing me to do so in the simulator.

2. If the answer to #1 is yes - does it make sense to do so since there will be almost no tax deductions? This is more of investment advice.

3. Is Roth IRA an available option in this situation? Fidelity is not allowing me to make a contribution over $700 in the simulator, irrespective of whether I choose to do #1 or not. Is that because the income is too close to upper phase-out limit?

Hope these questions make sense - thanks.

You are way over the income limits for a married couple with retirement plans at work. Those phase out between 103,000 and 123,000. Its 193,000 and 203,000 only if you have no workplace retirement plans.