Transfer Funds from Traditional IRA to SEP IRA for Tax Return Benefit
I was informed that if I made a contribution to my IRA before April 15 that my tax returns would essentially double. A friend told me that each year she transfers funds from one existing IRA into her SEP IRA and that this considered a contribution for the current tax year, thus reducing her tax liability. Is this correct? I cannot afford to make a contribution this year from savings, but if this transfer scenario is accurate, I would definitely do this. Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2018-02-21 19:47
That info is incorrect. A rollover contribution does not have any current year tax impact. You need to make a regular cash contribution to your TIRA (and qualify for the deduction) in order to reduce your tax bill for 2017.