Tax Law (Questions About Taxes)/401k and taxes


Hi John,
I was employed for 32 years with my former employer before I was terminated in February.  I have a 401k still managed by them.

After a couple of months being unemployed, I have a new job but they don't offer a 401k.  

My question is, can I contribute a lump sum to my 401k in December from my savings account and still have the income tax benefit that I had when my former employer was making deductions from my weekly paycheck when I file my taxes for 2014?



Thanks for your question.

Unfortunately, a 401(k) is always tied to your employer and you can only make contribution to the plan as an employer.  As an employee, your options for a retirement plan are limited to a traditional or Roth IRA, with a maximum annual contribution of $5,500 unless you are age 50 or greater, then the limit is $6,500.  The limit is a total amount for all types of IRA's.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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