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Old 02-09-2014, 07:16 PM
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Join Date: Dec 2013
Posts: 5
Smile Contribution and Withdrawal from IRA accounts

I asked this question a while back, but there is an additional angle to my dilemma and would appreciate any help on how to handle this.

I deposited $4,000 in my traditional IRA acct. early in 2013. Later in the year I took out an $8,000 distribution from this account. (I am allowed $6,500 contrib. based on my age and earned income in 2013.)

I just got a 1099 showing the $8,000 distribution for 2013.

I have a few specific questions regarding this and would appreciate if some one can help:
1. Should I claim the $4,000 contribution as deduction from my AGI, while paying tax on the $8,000 distrib., or, not take the deduction and pay tax on the net $4,000 distrib.

2. If I do not claim the $4,000 deduction (and pay tax on the full $8,000), can I contribute the fully allowed ($6,500) to a Roth IRA for 2013?

3. If I contribute an additional $2,500 to my traditional IRA can I claim the full $6,500 deduction from my AGI (and pay tax on the $8,000 distrib.)

4. Can I break-up my allowed contrib. into $4,000 to traditional IRA and $2,500 to a ROTH IRA, (while paying tax on the $8,000 distrib).

5. And lastly, Can I contribute to an IRA account (Trad'l or Roth) in the same year in which I am required to take an RMD.

Thanks for any help.



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