Can a lower income client (say about $15,000 of Sch C reported net income in 2015) open a Roth IRA right now; contribute say $1000 to it; claim the Form 1040 Retirement Savings Contribution Credit of about $350 for it (Line 51 for tax year 2015); and then, a few months later, withdraw the $1000 he contributed just a few months before, without violating any law or sustaining any penalty?
Thank you in advance.
2015) open a Roth IRA right now; contribute say $1000 to it; claim the Form
1040 Retirement Savings Contribution Credit of about $350 for it (Line 51 for tax year 2015); and then, a few months later, withdraw the $1000 he contributed just a few months before, without violating any law or sustaining any penalty? ============Yes, but only if an exception to the penalty (over age 59.5, disabled or dead) exists. I note that the 5 year rule of Roth IRA ownership will not apply as an exception here. The year of withdrawal must be different than the year of contribution.