Having received a distribution from an inherited IRA, it is added to one's income and taxed accordingly. The notification is by a Form 1099-R indicating distribution as a “death distribution” – i.e. code 4 in box 7 has been applied. Question: this amount is unrelated to any traditional IRA contributions made the same year?
Question: this amount is unrelated to any traditional IRA contributions made the same year?
Correct ... they are totally separate situations and do not negate each other ... however you must have other qualifying income to make the IRA contribution allowable.
You must have earned income from wages or self employment to make a qualified IRA contribution.
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