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Ask Lane Your Own Question
Category: Finance
Satisfied Customers: 9768
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have an retirement plan from a former employer

Customer Question

I have an retirement plan from a former employer for which I get a distribution each year now that I'm 69. 1.) I receive a 1099-R for it and 2.) the amount is automatically put into a Traditional IRA. My question is can I count the amount that is put into the IRA as a annual contribution to the IRA?
Submitted: 6 months ago.
Category: Finance
Expert:  Lane replied 6 months ago.
Hi,...I'm so sorry, no...If I understand correctly, what's happening here is an automatic direct rollover (which DOES keep the distribution from the retirement plan from being counted as taxable income) ... so a deduction, of sorts....But no, any contribution would have to come from other EARNED income.... I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content. That’s the only way I’ll be credited for the work here.…Thank you!Lane......I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate & tax advice since 1986.
Expert:  Lane replied 6 months ago.
As a follow up, that distribution (showing up on line 16a of the return as income, should also show up as a ZERO on line 16b "taxable amount")

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