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If i transfer an existing bank roth ira cd worth $4500 to fidelity, can i still invest $6500 for 2013?

Feb 09, 2014 by Joe from Glenshaw, PA in  |  Flag
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Peter C. Karp Level 20

Joe,

Transferring your ROTH IRA account from one institution to another is not considered a contribution, therefore you would still be eligible to make your IRA contribution of $6500 for 2013 as long as you are 50 years older or older. If you are younger than 50 you can only contribute $5,500. The limits apply to both IRAs and ROTH IRAs. As already mentioned the following link provides guidelines. http://www.irs.gov/Retirement-Plans/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-F

Disclosure: The posted information is for informational purposes only. This message does not constitute an offer to sell or a solicitation of an offer to buy any security. All opinions and estimates constitute Karp Capital's judgment as of the date of the report and are subject to change without notice. Accordingly, no representation or warranty, expressed or otherwise, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or timeliness of the information contained herein. Securities offered through Financial Telesis Inc., member SIPC/FINRA. Financial Telesis Inc. and Karp Capital Management are not affiliated companies.

1 Comment   |  Flag   |  Feb 11, 2014 from San Francisco, CA
Peter C. Karp

Correction, the url should read: http://www.irs.gov/Retirement-Plans/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-For-2013 Disclosure: The posted information is for informational purposes only. This message does not constitute an offer to sell or a solicitation of an offer to buy any security. All opinions and estimates constitute Karp Capital's judgment as of the date of the report and are subject to change without notice. Accordingly, no representation or warranty, expressed or otherwise, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or timeliness of the information contained herein. Securities offered through Financial Telesis Inc., member SIPC/FINRA. Financial Telesis Inc. and Karp Capital Management are not affiliated companies.

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Flag |  Feb 11, 2014 near San Francisco, CA

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5 votes
Joe Day, CFA Level 13

A rollover of an IRA to another IRA does not count as a current or prior year contribution. You should still be eligible to contribute in 2013 your full eligible amount. If you are over the age of 50 and you meet the income eligibility requirements for a Roth IRA, then yes you can contribute $6500 to your Roth IRA, if you have not made any other contributions to that Roth IRA for the tax year 2013.

To be sure of the rules go to the IRS site for all eligibility details:
http://www.irs.gov/Retirement-Plans/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-For-2013 http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits

2 Comments   |  Flag   |  Feb 09, 2014 from Seattle, WA
Michael B. Keeler, CFP®, CLTC

Joe is correct, but I would change the last part of the last sentence to say "if you have not made any other contributions to ANY Roth IRA for the tax year 2013."

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Flag |  Feb 10, 2014 near Las Vegas, NV
Colin

or really "to any IRA"...the $5500 ($6500 for older than 50) limit applies to all IRAs, regardless of Roth or traditional.

Flag |  Feb 10, 2014 near Oak Creek, WI

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