• 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.

    https://www.irahelp.com/slottreport/ira-rollovers-and-deductions-todays-slott-report-mailbag