Discussion:IRA EARLY DISTRIBUTION.
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Discussion Forum Index --> Basic Tax Questions --> IRA EARLY DISTRIBUTION.
Discussion Forum Index --> Tax Questions --> IRA EARLY DISTRIBUTION.
| 10 April 2009 | |
| One of my customers, is facing an early withdrawal penalty on IRA distribution. On 2006 and 2007, he took an IRA deduction but his taxable income was 0, because of that the deduction did gave him any, savings. I’m planning to amend 2006 and 2007 electing with form 8606 to convert the contributions to non deductible IRA contributions, that will increase my basis and reduce my tax liability and penalty for 2008. Does that sound good?
Thank You. | |
Rgtaxservice (talk|edits) said: | 10 April 2009 |
| Walmart has customers. Tax Practitioners have clients. | |
Rgtaxservice (talk|edits) said: | 10 April 2009 |
| According the 8606 instructions, you can file an amended return with a 8606 to make a deductible contribution into a non-deductible contribution. | |
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