Sorry, but you need to have that contribution returned by the IRA custodial as a "return of excess contributions", not as a normal distribution.
You cannot contribute to a Traditional IRA at all *in the year* that you turn 70 1/2.
If not removed by the due date of the tax return, it will be subject to a 6% penalty that repeats every year that it remains in the account.
**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.**
