We withdrew money from a Roth account to help with the down payment for our new home. That money has since been freed up. I was thinking about making Roth contributions for 2021 (I am age 70 and still working). But then I realized I would be making contributions with the same money we had withdrawn. In effect, I think we would be trying to get tax deductions twice. If that is indeed a problem, how long am I prohibited from making Roth contributions? Does that also apply to traditional IRA contributions? Many thx!
Having taken a ROTH IRA distribution does not limit your ability to make contributions to your ROTH IRA. Also, since contributions to a ROTH IRA are not deductible for tax purposes, the contributions have no effect on your income tax in the year you make them.
The same is true of traditional IRA's, accept that distributions are taxable and contributions are tax deductible.
Having taken a ROTH IRA distributions does not limit your ability to make contributions to your ROTH IRA. Also, since contributions to a ROTH IRA are not deductible for tax purposes, the contributions have no effect on your income tax in the year you make them.
The same is true of traditional IRA's, accept that distributions are taxable and contributions are tax deductible.
Having taken a ROTH IRA distribution does not limit your ability to make contributions to your ROTH IRA. Also, since contributions to a ROTH IRA are not deductible for tax purposes, the contributions have no effect on your income tax in the year you make them.
The same is true of traditional IRA's, accept that distributions are taxable and contributions are tax deductible.