Retire Safe & Tax Free - Year-End IRA Q & A


hands holding up Q and A

Q: I am 73 years old but I still work full time - can I contribute to my IRA?

No. Contributions cannot be made to an IRA beginning with the year you turn 70 1/2 and later. There is no "still working exception" for IRAs.

Q: If I participate in my work place 401(k), can I still contribute to an IRA?

A: Yes. However, the deductibility of your IRA contribution may be affected depending on your filing status and earned income for the year.

Q: I am not eligible to contribute to a Roth IRA because of my income. Am I also prevented from converting my traditional IRA to a Roth IRA?

A: No. Anyone can convert their traditional IRA to a Roth IRA regardless of their income level in the year of conversion.

Q: What is the deadline for making a 2015 IRA contribution?

A: For most it will be April 15, 2016. It is the same as the deadline for filing your tax return without extensions.

Q: How are distributions I receive from an inherited IRA taxed?

A: Distributions you receive from an inherited IRA will be taxed at your ordinary income tax rate for the year in which you receive it.

Q: I rolled over my IRA last December so I technically did not have an IRA balance on December 31, 2014 to calculate my RMD... am I exempt from taking an RMD for 2015?

A: That's a big NO (but nice try). For purposes of RMD calculations, all IRA assets "in transit" must be considered.

Source: IRA Publication 590-A and 590-B

Marc H. Weiss, Archer Weiss Insurance & Financial Services, Inc. Please Call Toll free: 1-800-831-2901 or (818) 610-8560