K question. Pre-tax dollars?
few other things to add to Boston’s answer…First, you can never take IRA money out pre-tax. It’s Always after-tax and then you take a deduction on the front page of the 1040 tax return. Same end result…Second, the money that came out pre-payroll taxes only comes out pre-Federal Income Tax. It is still taxed for social security and medicare. So it’s not pre-payroll taxes. Next, you will still be able to take the deduction…read the rules again 🙂 Lastly, if you can’t take the deduction then you have to notify the IRA holder that those contributions were not tax deductible and then have them (and moved) into an after-tax account. You don’t want to mix them. If you ever want to move the money back into a 401k (and there are valid reasons to do it) then you can’t have it tainted with after-tax money.
You rolled your 401(k) over into an IRA, not a “401(k) rollover account.” There’s no such thing. The 401(k) contributions were not included in box 1 of your W-2 so you didn’t pay tax on them going in. With an IRA contribution though you have to take the adjustment manually when you file your tax return. See the instructions for the IRA Deduction line on your tax return.
