IRA Contribution / Withdrawal in the same year I contributed $4,000 towards my traditional IRA early in 2013, but later on I took out a distribution of $8,000 from this account. I know I need to pay tax on the $8,000 distribution. I also opened a ROTH IRA account last week which is not funded yet. My question is two-fold:
1. Do I show both the $4,000 contribution as a deduction from my 2013 AGI, and $8,000 taxable withdrawal, or just a net $4,000 withdrawal.
2. Since I have already taken out more that I contributed to my regular IRA this year, can I contribute the fully allowed $6,500 contribution to my Roth IRA account in 2013, while paying tax on the net withdrawal of $4,000 from my regular IRA.
Thank you. |