CRD Returned First?
Does a CRD have to be returned first or can an individual choose to max out their IRA contributions for 2020 and then return their CRD distribution to the IRA?
Thank you!
Does a CRD have to be returned first or can an individual choose to max out their IRA contributions for 2020 and then return their CRD distribution to the IRA?
Thank you!
Permalink Submitted by David Mertz on Mon, 2021-02-08 17:52
There is no requirement that a CRD be repaid before making a regular IRA contribution even if that regular contribution is for a prior year. However, the CRD might affect one’s eligibility to claim a Retirement Savings Contributions Credit for the new IRA contribution.