topic Trying to use savers credit and 401k funds to fund IRA for my wife and I. Can this be done? in Retirement tax questions

Trying to use savers credit and 401k funds to fund IRA for my wife and I. Can this be done?

francist4242 — Sat, 01 Jun 2019 17:56:31 GMT

TurboTax is saying I would get about $1500 more from the savers tax credit if I contribute $5,500 to an IRA for my wife and I to total $11,000. Would it be beneficial to take an early distribution from my 401k to fund two IRAs with this money or is this even allowed? Maybe just rollover my portion to an IRA and take early distribution to fund her IRA?

Youre asking from TurboTax Business, are you working on a...

Lisa995 — Sat, 01 Jun 2019 17:56:32 GMT

Youre asking from TurboTax Business, are you working on a corporation return or ?

No, this is a personal return. Sorry for the confusion.

francist4242 — Sat, 01 Jun 2019 17:56:34 GMT

No, this is a personal return. Sorry for the confusion.

It doesn't work. The saver's credit is for the NET contr...

BobinCT — Sat, 01 Jun 2019 17:56:35 GMT

It doesn't work. The saver's credit is for the NET contribution to an IRA after offsetting recent withdrawals from other tax qualified plans. "they" thought of that!

Would it have been possible if I made a loan from the 401...

francist4242 — Sat, 01 Jun 2019 17:56:36 GMT

Would it have been possible if I made a loan from the 401k plan before I was separated from the company and continued to pay on that loan?