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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
Is there any re-characterization or any other process applied to the withdrawn contribution that would enable me to now make a new Roth or Traditional IRA 2017 contribution before April 15, 2018? Thanks!
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
Presumably the contribution in January 2017 was a contribution *for* 2017, not for 2016, otherwise you would not yet have made a contribution for 2017 (assuming that you made no other contributions in 2017). If you have not yet made a contribution for 2017 you have until April 17, 2018, the regular due date of your 2017 tax return, to do so.
Had you obtained a "return of contribution" of your contribution for 2017 from the Roth IRA, adjusted for any investment gain or loss while the money was in the Roth IRA, that contribution would be treated as if it never had been made. However, if you simply obtained a regular distribution, the original contribution is still considered to have been made and you have already maxed out your contribution for 2017. (A return of contribution is reported by the payer to the IRS differently than a regular distribution.)
Even if you had other money in your Roth IRA that you could now distribute as a return of your 2017 contribution to nullify your original contribution for 2017, you would simply be taking money out only to put it back in again.
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
The only possible way that you could make some amount of new Roth IRA contribution for 2017 would be if you could successfully argue to the satisfaction of the IRS that, despite the coding on the Form 1099-R, the original distribution represented some amount of returned contribution that was adjusted for gain or loss as required by section 408(d)(4) of the tax code and the distribution was incorrectly reported by Vanguard as a regular contribution, but your chance of success is slim. If the IRS does not accept your argument that the distribution was incorrectly reported by Vanguard, any new contribution that you make for 2017 will end up being an excess contribution subject to penalty. Given the low chance of success and red flag this would raise with the IRS, the likely answer is that there is NOTHING YOU CAN DO to be eligible to make a new Roth IRA contribution for 2017.
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
The reference that you cited is very misleading. It says, "If you withdraw contributions made during the current tax year you have until the end of the tax deadline (April of the following year) to redeposit the money back in your Roth IRA." What it doesn't say is that to be able to do so the contribution must be "withdrawn" by making a return of contribution, not by making a regular distribution.
Code T indicates a regular distribution made after you reached age 59½.
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
Presumably the contribution in January 2017 was a contribution *for* 2017, not for 2016, otherwise you would not yet have made a contribution for 2017 (assuming that you made no other contributions in 2017). If you have not yet made a contribution for 2017 you have until April 17, 2018, the regular due date of your 2017 tax return, to do so.
Had you obtained a "return of contribution" of your contribution for 2017 from the Roth IRA, adjusted for any investment gain or loss while the money was in the Roth IRA, that contribution would be treated as if it never had been made. However, if you simply obtained a regular distribution, the original contribution is still considered to have been made and you have already maxed out your contribution for 2017. (A return of contribution is reported by the payer to the IRS differently than a regular distribution.)
Even if you had other money in your Roth IRA that you could now distribute as a return of your 2017 contribution to nullify your original contribution for 2017, you would simply be taking money out only to put it back in again.
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If I made the max Roth IRA contribution in Jan. 2017 but then withdrew the total acct balance in Mar. 2017, is there a way to "remake" any 2017 IRA contribution now?
Yes, you have up until April 17, 2018 to contribute to a new Roth or to a Traditional IRA (or both), up to your max contribution amount.
Although you may have withdrawn more than that amount in march, you can still only contribute up to the contribution limit of $5,500 or $6,500. Read more at the IRS HERE.
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