General Account FAQs

What information do I need prior to opening an account with Pinnacle IRA?
All you need is about 5 minutes of time and an e-mail address to open an account with Pinnacle IRA. If you are selecting beneficiaries, it is helpful to have Social Security or Tax ID numbers available. If you don’t know a number, just enter ‘9’ nine times (999999999) in the required field.
Do I need any specific software to utilize Pinnacle IRA?
You will need Adobe Acrobat Reader and Java loaded on your computer. If you don’t already have those programs, click on the following links to download them. Both are free to download and install and come from trusted sources
I am having technical difficulties or need help opening my account, what should I do?
Please call us at 1-877-310-6828 or send an e-mail support@theiracenter.com and someone will help you with those problems. If you are e-mailing, be sure to provide a phone number for us to use in contacting you.
Can you help me make investment selections?
Once your account has been funded, GuidedChoice will select your initial investments based on what we know about you. By logging into your account and clicking the “Manage Investments” tab, you can provide as much or as little additional detail about other household retirement assets – including current and previous employer retirement plans. From here, GuidedChoice will tailor your IRA investment strategy to help you meet your specific retirement goals.
I have a Roth retirement account that my employer matches, is there anything special that I need to do?
You have two options, you can create a single rollover by converting the employer match to a Roth or you need to create one Roth account and one Traditional account for the rollover. If you choose to convert all the Funds to a Roth, you can have your current provider do the conversion as part of the distribution process prior to transmitting the funds.

Back to top
What is an Individual Retirement Account?
An Individual Retirement Account (IRA) is a personal tax-deferred retirement plan. It was developed to provide individuals with the opportunity to build their own tax-deferred retirement savings program.
Who may establish a Traditional IRA?
You may establish an IRA if you have compensation or earned income from employment or if you are divorced or separated and you receive taxable alimony or maintenance payments and have not attained age 70 ½. However, Rollover IRAs may be established by individuals over age 70 ½. If you are married, and both you and your spouse work, you can both establish an IRA. If only one of you works, or you both work and one of you receives minimal compensation and you file a joint Federal tax return, you can establish spousal IRAs for both of you.
How much can be contributed to an IRA?
You may contribute to an IRA, or, if you are eligible for a Roth IRA, any amount up to the $5,500 (for 2014) or 100% of your compensation if less than $5,500. If you and your spouse file a joint income tax return and your spouse has little or no income, you can contribute a total of $11,000 to separate IRAs established for you and your spouse. Additionally, a Catch-Up contribution of an additional $1,000 in 2014 can be made if you are age 50 or older in the contribution year.
How do I determine if my IRA contribution is deductible?
  • If neither you nor your spouse are active participants in an Employer Retirement Plan, you may deduct your entire IRA contribution
  • If you or your spouse are active participants but have an adjusted gross income (MAGI) below the threshold amount for 2014 (see Q-6), your contribution is fully-deductible.
  • If you and your spouse are active participants in an Employer Retirement Plan and your combined MAGI is above the threshold amount, your deductible contribution to an IRA is partial or not deductible using a Phase-Out method.
  • If your spouse is an active participant but you are not, you may fully deduct your annual IRA contribution if you file jointly and your MAGI does not exceed $181,000 (your ability to deduct your IRA contribution will be phased out ratably if your MAGI exceeds $181,000 but doesn’t exceed $191,000).
  • You may not deduct IRA contributions if your joint MAGI is $191,000 or more.
Who is considered an active participant in a Retirement Plan?
  • You are an active participant in an Employer Retirement Plan for a calendar year if your employer or union has a Retirement Plan under which contributions are made to your account or you are eligible to earn retirement credits. Your W-2 Form for the year should indicate your participation status.
  • If you or your spouse are active participants but have an adjusted gross income (MAGI) below the threshold amount for 2014 (see Q-6), your contribution is fully-deductible.
  • If you and your spouse are active participants in an Employer Retirement Plan and your combined MAGI is above the threshold amount, your deductible contribution to an IRA is partial or not deductible using a Phase-Out method.
  • If your spouse is an active participant but you are not, you may fully deduct your annual IRA contribution if you file jointly and your MAGI does not exceed $181,000 (your ability to deduct your IRA contribution will be phased out ratably if your MAGI exceeds $181,000 but doesn’t exceed $191,000).
  • You may not deduct IRA contributions if your joint MAGI is $191,000 or more.


Back to top
How much can I deduct if I am an active participant in a qualified plan?
If you are an active participant in an Employer Retirement Plan, your ability to make a deductible IRA contribution will be reduced or eliminated if the modified adjusted gross income (MAGI) on your Federal income tax return exceeds certain MAGI limits. The lowest such limit is known as the threshold amount. If your MAGI equals or exceeds the threshold amount, you may not deduct the maximum contribution ($5,500).
If Your MAGI equals or exceeds the higher limit known as the Phase-out Amount, you may not make a deductible IRA contribution for the year (though you may still make a non-deductible IRA contribution). If your MAGI falls between the threshold dollar amount and the phase-out amount, your maximum deductible IRA contribution is reduced ratably. The MAGI limits vary depending upon the tax year and your Federal filing status. See the chart below for more guidance.
How much of a contribution is deductible if the MAGI exceeds the threshold and I'm an active participant?
If your MAGI is less than $10,000 above your threshold level, you will still be able to make a limited deductible contribution. You can estimate your deduction limit using the following formula: $10,000-Excess MAGI x Maximum Allowable Deduction.
What happens to the amount of an IRA contribution that isn't deductible?
The amount of your IRA contribution which is not deductible is considered a non-deductible contribution. You may choose to make a non-deductible contribution even if you could have deducted part or all of the contribution. Interest or other earnings on your IRA contribution will not be taxed until distributed to you.
Although you may not receive a deduction, you can still contribute up to the lesser of 100% of compensation or $5,500 (or $6,500 if over the 50 years old) and $11,000 for Spousal IRAs (or $13,000 if spouses are more than 50 years old) for the 2014 tax year.
When must contributions be made?
You may make contributions at any time during a calendar year, up to the tax filing deadline for said year without extensions. Deductibility of contributions will be determined when you complete your tax return. You may withdraw an IRA contribution made for a year any time before April 15 of the following year.
If you do so, you must also withdraw the earnings attributable to that portion and report the earnings as income for the year for which the contribution was made. If some portion of your contribution is not deductible, you may decide either to withdraw the non-deductible amount or to leave it in the IRA and designate that portion as a non-deductible contribution on your tax return.
How is a contribution designated as non-deductible?
An IRA contributions is designated as a non-deductible contribution for a tax year by filing Form 8606 (Non-deductible IRAs) with your Federal income tax return for the tax year. Non-deductible IRA contributions may be made up to the due date for filing your federal income tax return for the tax year, not including extensions. If you file an amended return, you may change your designation of your deductible IRA contribution to non-deductible or vice versa (although such a change may result in a different tax liability).
What if contributions to my IRA exceed the limits?
If you contribute too much, an annual 6% non-deductible excise tax will be imposed on the excess contribution and any earnings attributable thereto until the excess contribution is removed from your IRA.
What types of IRA-based retirement plans are available to me through Payday IRA?
We Offer 3 different types of IRA-based retirement plans:
  • Simple IRA
  • SEP IRA
  • Payroll Deduction IRA
Is there any cost to my business to establish an IRA program with Payday IRA?
A SIMPLE IRA, which stands for Savings Incentive Match Plan for Employees, is similar in design to a 401(k). A SIMPLE IRA is a good fit for any business with fewer than 100 employees. In a SIMPLE IRA, the employer can match employee contributions up to 3%. For a more detailed look at a SIMPLE IRA, click here to visit the IRS website.
What is a SEP IRA Program?
A SEP IRA, which stands for Simplified Employee Pension, is a good fit for the self-employed. In a SEP IRA, all contributions are made by the employer. Contributions can be as high as 25% of an accountholder’s salary. To learn more about SEP IRAs, click here to visit the IRS website.
What do I need to establish a SIMPLE IRA, Payroll Deduction IRA or SEP IRA for my business?
The only information you need, aside from basic contact information, is your Employer Identification Number (EIN). You will also need to make note of the “Company Code” you are given once you establish a plan. You will need the “Company Code” to share with your employees.
How do Roth IRAs differ from Traditional IRAs?
Unlike Traditional IRAs, contributions to Roth IRAs are not tax deductible. But, if the requirements are satisfied, Roth IRA distributions are tax free. Also, contributions can be made to Roth IRAs even after the Roth IRA owner reaches age 70½ as long as the Roth IRA owner has earned income (or files a joint federal income tax return and one or both spouses have earned income). Roth IRA contributions may, however, only be made if the Roth IRA owner’s modified adjusted gross income (MAGI) is within the allowable limits. Roth IRA owners are never required to take distributions, so the assets may remain in the Roth IRA as long as the Roth IRA owner is alive.
How does the payroll deduction process work with Payday IRA?
Once each employee chooses the amount they want deducted each pay, you simply withhold that amount from their paycheck and remit the amount to our custodian, Mid Atlantic Trust Company. You will also need to enter the contribution data into the Payday IRA platform so that we can identify your contributions.
How do I sign my employees up for my new IRA?
You have two options for helping your employees open their new IRAs: Direct them to this website and have them open the account themselves, or upload a file with your employees’ information and we will automatically email them the IRA-establishing documents for them to E-sign. If you choose to direct your employees to this site, you will need to give them the “Group Code” that you received during plan establishment. We will also provide you with an Enrollment Guide to give to your employees.

Back to top