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401k Rollover vs IRA contrib
Old 01-04-2018, 09:11 AM   #1
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401k Rollover vs IRA contrib

We are now starting to withdraw from our retirement funds. I did a 401k rollover to an IRA some years ago, and also have a traditional (non-roth) IRA.

My question is if we withdraw only from the rollover, does that automatically calculate against my IRA contributions for tax purposes?

I know the withdrawal is fully taxable, but if possible, I prefer it not count against my IRA contributions to make part nontaxable because it makes more sense to use that when we hit RMD.

What am I missing?
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Old 01-04-2018, 10:30 AM   #2
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It would help to understand why you want to contribute and withdraw to a traditional IRA in the same year. Assuming you have earned income to qualify for a contribution, it seems like withdrawing a lesser amount would equate to making a contribution.
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Old 01-04-2018, 10:35 AM   #3
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Originally Posted by jazz4cash View Post
It would help to understand why you want to contribute and withdraw to a traditional IRA in the same year. Assuming you have earned income to qualify for a contribution, it seems like withdrawing a lesser amount would equate to making a contribution.
I retired 10 years ago and no longer contribute.

We need to pull from retirement for living expenses now.

My 401k was a pretax contribution. I know I pay taxes on that. Now we are in a lower tax bracket, but will be in a higher bracket come RMD at age 70. The 401k was rolled into a separate IRA. Seems I should be able to pull from that and pay taxes on all that, instead of it calculating that not all is taxable because it assumes that my IRA contributions were used to fund that. My 401k rollover is a separate IRA from the IRA I made contributions to.
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Old 01-04-2018, 10:45 AM   #4
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I think I am in s similar situation. Once I roll my 401k funds into an IRA, they are no different than any other pretax IRA funds. I believe 401k RMDs must be calculated and withdrawn individually, but IRAs values can be combined and a single withdrawal from any IRA will satisfy RMD.
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Old 01-04-2018, 10:45 AM   #5
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I'm a bit confused by your question. You say that your rollover IRA is all pretax from the 401K. Do you have any basis in your "regular" IRA from non-deductible contributions? If not,I don't know why you are worrying. If you do have basis in your "regular" IRA, it doesn't matter which account you withdraw from..........all your IRAs are considered one big IRA when you withdraw..........you would be treated as drawing from that combined IRA ....try filling out F8606 to see how it works.
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