topic Why am I being asked about retirement distributions from 2017, 2018 and 2019 for my 2020 tax return, in regards to a Retirement Savings Contribution Credit? in Retirement tax questions

Why am I being asked about retirement distributions from 2017, 2018 and 2019 for my 2020 tax return, in regards to a Retirement Savings Contribution Credit?

duderino79 — Mon, 22 Mar 2021 23:53:36 GMT

I already paid taxes on my distributions from 2017, so it shouldn't be deducted from the Savings Credit for what I saved to my retirement in 2020 correct?

Re: Why am I being asked about retirement distributions from 2017, 2018 and 2019 for my 2020 tax return, in regards to a Retirement Savings Contribution Credit?

dmertz — Tue, 23 Mar 2021 00:14:30 GMT

Its asking about distributions made after 2017. Distributions made after 2017 and before the due date of your tax return if not rolled over or converted to Roth reduce the amount of new contributions that are eligible to be considered when calculating this credit. This is to avoid one getting the credit for simply taking out the retirement money just to use it to make a new contribution and get a credit without actually increasing retirement savings.

Re: Why am I being asked about retirement distributions from 2017, 2018 and 2019 for my 2020 tax ...

MaryK4 — Tue, 23 Mar 2021 00:18:42 GMT

Any distributions you make in the prior three years reduces the amount of the Saver's Credit.