@youssefelramy wrote:
distribution was with chase, I got 1099-r from them, at the end of 2020 I opened an account with Vanguard, and deposited for 2020 $2300 the issue I’m asking about is with the tax break on the 2300, I have a traditional IRA don’t want to pay taxes on them now, so that means when I include this number as a contribution for ira there should be a tax deduction of 2300 reflected right? if yes that’s not happening
You are mixing apples and oranges.
Your Chase distribution has nothing to do with a new IRA contribution. As long as you have taxable compensation (money you worked for - W-2 or net self-employed income) at least as much as $2,300 then that can be a NEW IRA contribution that can be deductible if you qualify for a deduction.
Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.
However, your Chase distribution is fully taxable. If you just wanted to change trustees you should have just had Chase make a trustee-to-trustee transfer of the funds to Vanguard and you would not report anything at all.
Unfortunately it is too late to do that and you will loose money on the deal since a IRA deduction just reduces you taxable income and is not a dollar-for-dollar refund.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
