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Here at Pinnacle Retirement Group, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Pinnacle Retirement Group
(561) 629-7820

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IRA ROLLOVERS AND DEDUCTIONS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD
Director of Retirement Education

Question:

Hello,

If an individual has a solo 401(k), is this considered a “retirement plan at work” that would limit the deductibility of IRA contributions?

Thanks!

Susan

Answer:

Hi Susan,

Being an active participant in a retirement plan for the year can limit your ability to deduct your traditional IRA contribution, depending on your income. Participating in a solo 401(k) would count as active participation for this purpose.

Question:

Greetings:

First and foremost, I want to thank you for your time and consideration regarding my request for help. Second, regarding my deceased wife’s  IRA (which I inherited), can this be rolled over to a ROTH IRA, understanding I pay the tax? Thank you!

Warm regards,

Mike

Answer:

Hi Mike,

Spouse beneficiaries have options which are not available to nonspouse beneficiaries. You can do a spousal rollover of the IRA you inherited from your wife and then convert that IRA to a Roth IRA. Nonspouse beneficiaries cannot do spousal rollovers and cannot convert an inherited traditional IRA to an inherited Roth IRA.

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