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filing40
New Member

Can I put money back in my IRA to avoid paying taxes on this money? I saw a suggestion as I was usingTurbo Tax that stated / possible /before April deadline. Also howmuch

 
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Opus 17
Level 15

Can I put money back in my IRA to avoid paying taxes on this money? I saw a suggestion as I was usingTurbo Tax that stated / possible /before April deadline. Also howmuch

If you withdrew money, you have 60 days to put it back to avoid all tax consequences.

You may be able to contribute to the same IRA or a new IRA account and take a tax deduction for the contribution.  This depends on your income and whether or not you participate in a retirement plan at work.  If you are eligible to contribute to a tax-deductible contribution, you can make a contribution for 2017 by April 15, 2018 and deduct it on your 2017 tax return.  (You must tell the plan that this is a contribution for 2017.) A new contribution might offset some of the tax of a withdrawal, but they are treated as two separate transactions each governed by their own separate rules.

Your maximum contribution is $5500, or $6500 if over age 55.  So if you withdrew more than that, you can't offset it all.  And if you withdrew money before age 59-1/2, you will still owe the 10% penalty even if you offset the withdrawal with a new contribution.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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1 Reply
Opus 17
Level 15

Can I put money back in my IRA to avoid paying taxes on this money? I saw a suggestion as I was usingTurbo Tax that stated / possible /before April deadline. Also howmuch

If you withdrew money, you have 60 days to put it back to avoid all tax consequences.

You may be able to contribute to the same IRA or a new IRA account and take a tax deduction for the contribution.  This depends on your income and whether or not you participate in a retirement plan at work.  If you are eligible to contribute to a tax-deductible contribution, you can make a contribution for 2017 by April 15, 2018 and deduct it on your 2017 tax return.  (You must tell the plan that this is a contribution for 2017.) A new contribution might offset some of the tax of a withdrawal, but they are treated as two separate transactions each governed by their own separate rules.

Your maximum contribution is $5500, or $6500 if over age 55.  So if you withdrew more than that, you can't offset it all.  And if you withdrew money before age 59-1/2, you will still owe the 10% penalty even if you offset the withdrawal with a new contribution.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

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