I am 65 and have withdrawn a portion of one of my IRA accounts this year. Turbotax says I can also contribute up to 6000. Can both be true?

[smorse6650]

I received dividends from an IRA as a distribution in 2016.  Following the prompts in turbotax it is telling me that it is ok to also contribute up to 6000 into an IRA this year.  I am confused about if this is correct or if I have somehow duped my program into letting me do something incorrect. 

[PaulaM · Accepted solution]

As long as you have earned income you can continue to contribute to a traditional IRA until the age of 70.5 or when you are required to take RMDs. And yes, you can have both, a contribution and a distribution. These are separate events.

How much can contribute depends on several factors, such as your earned income, whether you have a spouse with a retirement plan at work, etc. See the IRS link below.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...