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Retirement tax questions
You cannot, given that you have no earned income. Reinvesting the tax withholding won't work because the IRS requires that other funds be used to make up for the amount withheld. However, in your situation, with no earned income, you won't be able to contribute other funds to your traditional IRA. The IRS provides the following information regarding roll-overs and tax withholding from a traditional IRA:
How much can I roll over if taxes were withheld from my distribution?
If you have not elected a direct rollover, in the case of a distribution from a retirement plan, or you have not elected out of withholding in the case of a distribution from an IRA, your plan administrator or IRA trustee will withhold taxes from your distribution. If you later roll the distribution over within 60 days, you must use other funds to make up for the amount withheld.
The above information was obtained from the following link:
Rollovers of Retirement Plan and IRA Distributions
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