Withdraw then re-contribute non-deductible Traditional IRA contribution?

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I forgot that I have upcoming estimated quarterly tax payment on 1/15. When the new year started I automatically made a $5,500 non-deductible Traditional IRA contribution. The contribution is currently just sitting in cash in my IRA so there's no gains/losses. As it turns out, I may need this money to pay my quarterly taxes. I'd prefer not to liquidate my taxable holdings as I'd incur capital gains on them. 

Would I be able to withdraw my contribution then re-contribute later in the year? Thanks!

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If you want to use your once-per-year 60-day rollover, you can do that. Just take the money out of the TIRA and put it back within 60 days. Make sure the custodian knows what you're doing so they can advise you on any potential pitfalls. I don't think it would be a problem to "rollover" the funds back to the same custodian, but I'm really not sure.

Alternatively, 0% BT CC. Take cash advance from one of your existing credit cards. Pay exorbitant interest on it for a day or two. Zero out the balance on your existing credit card using a 0% BT from a new credit card.

If you have a 401K plan you can borrow against, that's also an option.

Finally, if you have any income with an opportunity to have tax withholding, you can have taxes withheld that way in place of making quarterly payments.  If you have employment income or if you have an inherited TIRA with RMDs, these are both good ways to get taxes withheld, which will eliminate the need to make quarterly payments.

Whatever you do, be careful.  If you screw this up, you run the risk of losing the opportunity to contribute $5500 into your IRA for 2017. Sometimes, after you take it out, even if you find a way to do it without penalty, you're not able to put it back in, because it counts as a distribution, not a rollover.

Yes, you can but do it carefully.   You must tell your IRA custodian that you are withdrawing current yr contribution and earnings.   You must declare earnings on 1040 and may have early withdrawal penalty
as well altho in your case, it sounds like earnings/penalty will be minimal or 0.    Once you have done this, it is as if the contribution had never been made so you can do a normal contribution later.
From Pub. 17:
*******************************************************************************************************************************************Contributions returned before the due date of return.   If you made IRA contributions in 2016, you can withdraw them tax free by the due date of your return. If you have an extension of time to file your return, you can withdraw them tax free by the extended due date. You can do this if, for each contribution you withdraw, both of the following conditions apply.You did not take a deduction for the contribution.You withdraw any interest or other income earned on the contribution. You can take into account any loss on the contribution while it was in the IRA when calculating the amount that must be withdrawn. If there was a loss, the net income earned on the contribution may be a negative amount.Note.To calculate the amount you must withdraw, see =inheritWorksheet 1-4 under =inheritWhen Can You Withdraw or Use Assets? in chapter 1 of Pub. 590-A.Earnings includible in income.   You must include in income any earnings on the contributions you withdraw. Include the earnings in income for the year in which you made the contributions, not in the year in which you withdraw them.Early distributions tax.   The 10% additional tax on distributions made before you reach age 59½ does not apply to these tax-free withdrawals of your contributions. However, the distribution of interest or other income must be reported on Form 5329 and, unless the distribution qualifies as an exception to the age 59½ rule, it will be subject to this tax. 
***************************************************************************************************************************
This is about  withdrawing/recontributing to Roth IRA but same applies to TIRA:
Can I Redeposit Early Withdrawn Contributions in My Roth IRA?Maybe. The answer is yes in certain situations, and no in others. If you withdraw contributions made during the current tax year you have until the end of the tax deadline (April of the following year) to redeposit the money back in your Roth IRA
http://www.rothira.com/blog/can-you-return-withdrawn-roth-ira-co...
 

kaneohe said:   Contributions returned before the due date of return.
  I forgot about this.  Good catch.

Given the current market, find a low cost BT. Many CCs can run that payment as a purchase giving you up to 55 days to get your house in order without messing with your IRA. IMO, that would be the smarter way to go. Simply check your statement closing date when selecting which credit card to use.
For more detail, see

https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card



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