By Sarah Brenner, JD
Director of Retirement Education
If an individual has a solo 401(k), is this considered a “retirement plan at work” that would limit the deductibility of IRA contributions?
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.
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!
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.