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I'm in a situation where I have a significant amount of money in an IRA that I need to withdraw over the next several years and I want to minimize the tax penalty.

I have some leftover tax credits and could withdraw $30K without any additional taxes for last year.

I find a lot of information on depositing to an IRA for last year, with a cutoff of Apr-15.

I can't find any information on withdrawing from an IRA and crediting it to last year.

My investment advisor and tax accountants haven't had any answers.

This doesn't seem like it should be that unusual a question. ¯\_(ツ)_/¯

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    I'm surprised neither of your advisors gave you the same information as littleadv's answer.
    – stannius
    Mar 21, 2023 at 17:12
  • @stannius They both said that they didn't know of any way to do it. In my mind, since there is a way to backdate contributions, there should be a corresponding way to backdate withdrawals.
    – BWhite
    Mar 21, 2023 at 17:22
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    I got through to the IRS last night and they agreed that there is no way to backdate withdrawals. The only solution they had is to do tax planning in December and have a rough guess at how much you can withdraw. It appears that I may be SOL for this year.
    – BWhite
    Mar 21, 2023 at 17:27

1 Answer 1

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You cannot backdate a withdrawal from an IRA. The backdating of contributions is explicitly allowed in the IRC (See 26 USC 219(f)(3)), but there's no such provision for withdrawals (See 26 USC 408(d)).

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