There are two parts to the question:
So here is my situation; I retired in late 2022 and began withdrawing from my IRA in 2023. However, since I did retire in late 2022 I received a bonus in early 2023 for my work in 2022. During my time with the employer I did participate in their 401(k) program. Questions:
- Since I did earn income in 2023 am I allowed to contribute to my IRA in 2023 even though I withdrew amounts from the account? This payment will be made prior to April 15, 2024.
- The 2nd line on the IRA contribution screen asks how much of that contribution was made in 2024. Should I enter the whole IRA contribution in this line? Since all of it would be made in 2024 I enter the whole amount. When I enter the amount on the first line the deduction is recognized and the tax adjustment made. However, when I add the amount 2nd line (made in 2024) the IRA contribution is reversed out and tax calculations revert back to what it was previously. When I make the entry for my wife there's no issues; the contribution is recognized and tax adjusted accordingly.
Thanks for any input .
