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Tradd
10-3-20, 3:10pm
I will now have to save on my own for retirement since I don't have a 401K at my new job (very small company).

I have a Vanguard IRA that was the 401K from a previous job I left in 2006. It has a tidy sum in it, but I will need to save much more.

This is my question: can I add to the current IRA - post-tax $$ - since it was started with PRE-tax $$? Or do I have to start a new IRA?

I have absolutely no clue, which is why I'm asking.

I'm 51, FYI.
Tradd
10-3-20, 3:19pm
So I need to start a NEW account so I don’t mix the types?
Yppej
10-3-20, 3:21pm
As I understand it the post-tax IRA is a Roth and you can convert a conventional to a Roth, but have to leave the money in the account at least five years to avoid a tax liability.

Deleted previous post and clarified here.
Tybee
10-3-20, 4:10pm
This article may help you:

https://www.cnbc.com/2018/06/01/how-to-save-for-retirement-if-you-dont-have-a-401k.html

They talk about a SEP IRA, which would be different than your current IRA. You can contribute to the one you have already and it lowers your taxable income.

Or you can start a Roth IRA, which they explain.

I would just call Vanguard and they will tell you everything you need to know--start there.
Gardnr
10-4-20, 9:17pm
I know you are working in a small "shop". Talk to the boss about a pre-tax option.

Post tax, you can put in 6000 or 7000 into a Roth once 50yo. And you can do both! You really will benefit most from the pre-tax but your employer has to pull that.
beckyliz
10-5-20, 2:51pm
If you want to keep your current IRA as pre-tax, you'll need to open a new one for Roth (after tax) contributions. You can put your own pre-tax contributions into your current IRA. if your employer does not offer a qualified retirement plan, the pre-tax contributions will be deductible. If your employer offers a plan, they probably won't. https://www.irs.gov/retirement-plans/traditional-and-roth-iras
Tradd
10-5-20, 3:34pm
If you want to keep your current IRA as pre-tax, you'll need to open a new one for Roth (after tax) contributions. You can put your own pre-tax contributions into your current IRA. if your employer does not offer a qualified retirement plan, the pre-tax contributions will be deductible. If your employer offers a plan, they probably won't. https://www.irs.gov/retirement-plans/traditional-and-roth-iras

BINGO! Exactly the info I was looking for. Employer does NOT offer a retirement plan at all.

I forgot a friend from church is a CPA. Just sent him an email.