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Author: bayskater Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Tax on IRA contrib. & distrib. Date: 2/9/2001 10:31 AM
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If a person receives an IRA distribution of $1079 (due to a rollover) in the same year that he makes an IRA contribution of $1925 from his earned income, do these two events have any effect on each other? Can he still deduct the full $1925? Are the taxes on his distribution different than they would have been without the contribution? Is this covered in Any IRS publ. that you know of? This person is 70 years old but will not become 70 1/2 in the tax year.
Thanks,
bayskater
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46102 of 121219
Subject: Re: Tax on IRA contrib. & distrib. Date: 2/9/2001 10:40 PM
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If a person receives an IRA distribution of $1079 (due to a rollover)

These terms are mutually exclusive. If a distribution was rolled over, it's not treated as a taxable distribution. What exactly happened?

in the same year that he makes an IRA contribution of $1925 from his earned income, do these two events have any effect on each other?

No.

Can he still deduct the full $1925?

The disribution, whether taxable or non, doesn't in itself affect the deductibility of a traditional IRA contribution.

Are the taxes on his distribution different than they would have been without the contribution?

No.

Phil Marti
VITA Volunteer

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