Retirement Distribution Then Contribution to reduce tax

Possibly.  Whether or not you can make a Deductible Traditional IRA Contribution depends on your Modified Adjusted Gross Income (MAGI) and whether or not you are "covered" by an Employer-Sponsored Retirement Plan (Retirement Plan Box Checked on Line 13 of your Form W2).  In addition, your return must include "earned" income such as wages or profits from operating your business.  For more details, please see IRS Topic 451, IRAs.

If you are unmarried and you are not covered by an Employer Sponsored Retirement Plan, you can make a Deductible Traditional IRA Contribution no matter what your MAGI.

If you are Married Filing Joint and you are not covered by an Employer Sponsored Retirement Plan but your spouse is, your ability to make a Deductible Traditional IRA contribution phases out when your joint MAGI is between $218,000 - $228,000.

If you are covered by an Employer Sponsored Retirement Plan, your ability to make a Deductible Traditional IRA contribution phases out when your MAGI hits certain levels based on your filing status: 

• Married Filing Joint or Qualified Widow: Phases out between $116,000 - $136,000.
• Single or Head of Household: Phases out between $73,000 - $83,000.
• Married Filing Separate: Phases out between $0 - $10,000 (Married individuals who live apart at all times during the year are treated as Single).

Thank you Rachel, perfectly explained.