Traditional IRA Deduction

[pthoben]

I made a $100 contribution to one of my traditional IRAs in early 2019.  In December 2019, I converted the balance of this traditional IRA to my Roth IRA.  Since the entire conversion is considered a taxable distribution, am I able to deduct the original $100 contribution against my AGI?

[DaveF1006 · Accepted solution]

Since the original contribution was made to a traditional IRA then converted, you are allowed to take that $100 contribution as a deductible contribution since you were taxed on the conversion.

[Hal_Al]

You can if you want to.  Alternatively, you can consider it a non deductible contribution. It will affect  how the computation of the taxable amount of the conversion is  done.  Calling it deductible will unlikely affect your AGI, as it will be  offset by the conversion. 

"The entire conversion is considered a taxable distribution" is not necessarily true, if your IRAs had previous non deductible contributions.

You say you're converting one of your IRAs. When calculating the taxable amount of the conversion, the balances in all your IRAs are considered, including previous non deductible contributions. 

You could also consider  recharacterizing the $100 to  a Roth contribution. You have til 4-15-20 to do that.