dmertz
Level 15

Retirement tax questions

If the amount that you withdrew from the traditional IRA in 2017 is more than the contributions that you made to the 401(k) and the traditional IRA for 2017, you are not eligible for any Retirement Savings Contributions Credit for 2017.  This credit is calculated on the first $2,000 of new retirement contribution for 2017 that exceed the amount that you withdrew.  (This is to prevent people from taking a retirement distribution just to fund a new contribution and claim the tax credit, without actually increasing their retirement savings.) 

You still might be eligible for a deduction for a traditional IRA contribution for 2017, depending on your filing status and modified AGI.

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