Hal_Al
Level 15

Retirement tax questions

Yes, you can do that; but probably shouldn't.

In most cases, it the math doesn't work out. It's just a wash. The $6500 distribution will be taxable (being over age 59-1/2 only eliminates the 10% early distribution penalty, not the tax). If you did it now, the distribution would be taxable on the 2017 return, but the contribution would get a deduction on the 2016 return (logistically your probably couldn't get it done by tomorrow).

That assumes you meet the other rules; AGI limits and having enough earned income.

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