I am aware that one can only deposit $5k per year into a traditional IRA while deducting that same amount from your gross income. However, how does it work for the following scenario: 1. Person has IRA 2. Person receives $100k and wants to put it in an IRA Can that person put $100k into the IRA and then deduct $5k from their gross income and still get the tax deferred benefit with the other $95k? In other words, can the account be funded with $100k and avoid paying the capital gains each year when changes to the portfolio are made?