Can I roll over money from another plan into my OregonSaves account?

Yes, you can roll over money from another plan into your OregonSaves account. It is best to consult with a tax expert or financial advisor before making any changes to better understand any steps to take and restrictions that may apply. Rollovers from pre-tax retirement plans like 401(k)s and 403(b)s will be taxed to convert them from pre-tax to post-tax status for inclusion in a Roth IRA.

How will I know if I am nearing the annual IRA contribution limit?

OregonSaves will monitor your account and notify your employer to stop contributions when you are nearing the limit. However, OregonSaves will not have information on any other IRAs you may maintain and contribute to. You should ensure that the total of all your retirement accounts is within the IRS’s annual limits. Please consult with a tax expert or financial advisor to discuss your specific circumstances.

If I have another IRA in addition to the State's program, does the contribution limit apply to each separately or to the combined amount?

The IRS's annual IRA contribution limits apply to the combined amount contributed to all your IRAs, both Traditional and Roth.

Is my contribution pre-tax or post-tax?

Contributions to OregonSaves are made on a post-tax basis. The percentage contributed is based on your gross income earned (the amount you make before any taxes or deductions have been taken out) with your facilitating employer. If you also contribute to a Traditional IRA, those contributions may be deductible on your tax return. It may be best to consult with a tax professional to determine what you can or cannot deduct.

Why don’t OregonSaves contributions show up on my W2?

OregonSaves acts as a payroll deduction IRA, not a retirement plan as defined for the W2, so you won’t see your contributions reflected on your W2. Your IRA trustee will file “Form 5498 IRA Contributions Information” with the IRS, and you’ll receive a copy no later than May 31. This does not need to be filed with your taxes but should be kept with your tax records as documentation of your contributions for a particular tax year.

Is the contribution rate based on gross or net income?

Your contribution rate is based on your gross income (total income before taxes and other regular deductions).

Is there a limit to how much I can contribute?

Yes, contribution limits for IRAs are set by the federal government. For 2024, you can save up to $7,000 per year if you’re younger than 50 and $8,000 per year if you’re 50 or older, as long as you have earned at least that much. If you ‘re contributing to a Roth IRA, you also need to meet certain income levels based on your modified adjusted gross income (MAGI). This contribution limit applies across all IRAs you may have (both Traditional IRAs and Roth IRAs with the State and elsewhere).

Is there a maximum percentage of income that can be contributed?

There is no upper limit on the percentage of income that can be contributed; however, IRAs have annual contribution limits. Roth IRA contributions may be further limited by your income if it is above certain limits. Your contributions are made post-tax, and your employer can’t deduct more than the amount of your available pay after the employer has made any other payroll deductions that have higher preference as required by law.

Are there additional withdrawal restrictions beyond normal Roth IRA restrictions?

No. The only withdrawal restrictions for OregonSaves IRAs are those set by the federal government for any Roth or Traditional IRA. Please consult with a tax expert or financial advisor about your circumstances.

Can I transfer my OregonSaves money into another retirement savings account?

Money in your Roth IRA can be transferred or rolled into another Roth IRA only. You should consult with a tax expert or financial advisor first.