Transferring Money from a 401K to a Traditional IRA

Investing
#1

Hello! My husband left his old employer and has a 401K with them, however, his new employer does not offer any retirement accounts/401K/etc. He is looking at transferring his 401K from his previous employer into a Tranditional IRA (haven’t decided on a company yet). We’re wondering if he can continue to make contributions to the Traditional IRA or does it not work like that since the new contributions wouldn’t be a rollover?

Thanks!

#2

Yep, he can make contribution to a Traditional IRA up until the annual contribution limits. Transferring the 401k assets into the IRA does not count against the annual contribution limit.

I hope this helps!

#3

Thanks Shane! Much appreciated.