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rollover ira

Forum|Forum|3 years ago
April 2, 2023
2 replies
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I have client who rolled over 401k form her workplace during 2022, and form 5498 number 1 IRA contribution shows $4,000.00.

Even if she has rollover IRA, is it still possible to contribute to Traditional IRA for 2022?

Lacerte Tax

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Best answer by qbteachmt

"and form 5498 number 1 IRA contribution shows $4,000.00."

If you are describing Box 1, then there already is some contribution for that year.

If you see it in Box 2, then it is Rollover, not contribution as New Funds.

In any case, you need to know what the taxpayer qualifies for. Box 1 would be part of what they are allowed, as it reflects contributions already made for that tax year.

abctax55

Level 15

Yes

HumanKind... Be Both

A

arnolddrAuthor

Level 2

Thank you.

qbteachmtAnswer

Level 15

"and form 5498 number 1 IRA contribution shows $4,000.00."

If you are describing Box 1, then there already is some contribution for that year.

If you see it in Box 2, then it is Rollover, not contribution as New Funds.

In any case, you need to know what the taxpayer qualifies for. Box 1 would be part of what they are allowed, as it reflects contributions already made for that tax year.

Don't yell at us; we're volunteers

A

arnolddrAuthor

Level 2

Thank you.

Client's Form 5498, 2022 IRA Contribution Information shows as below:

1. IRA contribution (other than amounts in boxes 2-4,8-10,13a and 14a) ----$4,000

5. Fair market value ------ $5,204.38

7. IRA Type --- IRA

Client mentioned that she rolled over her 401k to IRA during 2022

and I am wondering if she still can contribute to Traditional IRA.

abctax55

Level 15

Yes... as I've already said....

I guess I should CYA & say as long as your client qualifies to make a current year contribution.

HumanKind... Be Both

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