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New Member
posted Apr 15, 2024 9:21:36 AM

Can i deduct an ira on 2023 return from deferred compensation funds received in 2024?

I closed out deferred compensation account and rolled it over to an ira. can I use the ira deduction from this rollover on 2023 return or wait until 2024 tax return?

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2 Replies
Level 15
Apr 15, 2024 10:57:00 AM

NO.  A rollover is not a new contribution.  Just enter it from the 1099R, nowhere else.  You don't get a deduction for it.  

Expert Alumni
Apr 15, 2024 10:57:22 AM

You do not enter a rollover to an traditional IRA as a contribution to a traditional IRA. You should receive a 2024 Form 1099-R in 2025 to report this rollover since it happened in 2024. You will enter this on your 2024 return.

 

You can make direct contributions to the traditional IRA for 2023 until April 15th, 2024.

 

For 2023 the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Please see IRA deduction limits details.