Can i still deduct my traditional IRA contribution in 2017 if I withdrew this amount at the end of the year?

[srvottiero · Accepted solution]

The answer is Yes.  There are two ways to look at this dilemma.  The first, when going through the income section of Turbo Tax it would ask you if you took an IRA distribution - Yes.  When running through the deductions/credits section, a contribution to a traditional IRA - Yes.   The second, all the proceeds from a traditional IRA distribution are taxable income.   If you don't take the contribution deduction, you'd be paying double the taxes on all that after tax money.   Remember that you'll be penalized if you are not at least 59 1/2 when you took the distribution.