withdraw then contribute?
I am 59 1/2, may possibly have a temporary cash flow problem. Can I withdraw $2000 now and then next year contribute the max (for 2012)?
I am 59 1/2, may possibly have a temporary cash flow problem. Can I withdraw $2000 now and then next year contribute the max (for 2012)?
Permalink Submitted by mk foss on Thu, 2012-05-31 16:54
Absolutely fine to do this. All IRA withdrawals are taxable at ordinary rates and there are no time restrictions (like a 5 year wait for example). Once you’re over 59.5, there are no penalties either. You can still contribute even when you’ve taken a distribution as long as you have sufficient earned income for the contribution.