72T in force can I still contirbute to 2nd IRA for
L1: 72T in force can I still contirbute to 2nd IRA forHello, enjoy this forum. I would like to know if I can make a tax deductible contribution to an IRA if I have a 2nd IRA that I am already taking a 72T distribution from? I have seen some of the posts regarding the separation of the funds. In my case, I had a 401K with an employer that when I left that employer, I rolled into a 2nd IRA account. So the funds in the 2nd IRA account (that I am not getting distribution from) has never been mingled with the IRA that has the 72T. I can get a much better tax credit this year if I contribute to an IRA. I just want to be sure that I can so. Thanks2008-03-10 17:29, By: mo, IP: [22.214.171.124]
L2: 72T in force can I still contirbute to 2nd IRA forSince your 2nd IRA has always been totally separate from your 72t plan, there is no problem contributing to it. Just be totally sure your contribution goes to the right account.
However, if the tax credit you are referring to is the Savers Credit, I doubt if it can apply since you must reduce your contributions per Form 8880 by amounts you have taken out of your IRAs over a “testing period” that goes back 3 years and forward to 4/15/08. Since you have a 72t in progress, you obviously have been taking distributions.
Now, if you did not really mean a tax credit, but just a deduction, then no problem.
2008-03-10 22:18, By: Alan S., IP: [126.96.36.199]
L2: 72T in force can I still contirbute to 2nd IRA forGREAT RESPONSE. I hadn”t even thought of the Savers” Credit, and its nuances,when I read the query.2008-03-11 08:47, By: dlzallestaxes, IP: [188.8.131.52]
L2: 72T in force can I still contirbute to 2nd IRA forExcellant, thank you for your response. And, thank you for clarifying my intent. Yes, I do mean an IRA deduction which when taken, will give me a larger tax refund. I”m delighted with this forum, thanks for your help.2008-03-11 17:25, By: mo, IP: [184.108.40.206]