401k Question

[ActionFreak]

I am leaving my job and I am not getting another one any time soon. I want to get money into tax deferred accounts. Is there any way to get money into a 401k when you don't have a job?

[GoblinMason (Craig)]

You can roll it into a traditional IRA which is the same thing.

(I think.)

[gull]

Traditional IRAs and Roth IRAs still require earned income.

[mattnxtc]

set up a roth IRA and you should be able to transfer your entire 401k there without getting hit by taxes i believe

[tonybormin]

No. You can't contribute to a 401k without income.

You can roll that over into a traditional IRA where the answer is still no. You need earned income to contribute to an IRA.

You're going to have to work to do it.

[dlk9s]

You may want to look into a SEP-IRA. I am self-employed and just set one up. There were no questions about my income. Contributions to a SEP are treated basically like a 401(k).

Give Vanguard, Fidelity, or another reputable mutual fund company a call and ask for some advice. I invest with Vanguard and they were very helpful.

[AceLuby]

Isn't there a cap on IRA's?

OP how much is in your 401(k)?

[prohornblower]

[ QUOTE ]
set up a roth IRA and you should be able to transfer your entire 401k there without getting hit by taxes i believe

[/ QUOTE ]

This is wrong, money that goes into, or gets converted into, a Roth IRA is always post-tax money. He can do a conversion to a Rollover IRA, then to a Traditional IRA, without having a job, but in order to make future contributions, he needs earned income.

[prohornblower]

[ QUOTE ]
Isn't there a cap on IRA's?

OP how much is in your 401(k)?

[/ QUOTE ]

Not for rollovers. The cap on Contributions to the IRA for those under 50 is $4k this year. This only affects Contributions, not Conversions (rollover money).

My friend just converted like $17K into his Roth IRA this year.