@smbosworth wrote:
So we did put it in a IRA - the bank told us that it was the same as repaying the withdrawal to the 401K as long as it was within the time frame. Is that not so? Does that make it a rollover as opposed to repaying? Will we have to pay tax on the whole withdrawal since we put it in the IRA?
Hang on.....I think there is some confusion between a rollover and a COVID related distribution.
If you simply rolled all or part of a Traditional IRA distribution back to another Traditional IRA within 60 days then that is a simple rollover and is NOT a COVID-19 related distribution at all. The part you rolled over is not taxable only the part you did not rollover is.
You only enter it as COVID related if you want to spread the repayment and tax over 3 years.
Unless you want to treat the part NOT rolled over as COVID related - then you must split the 1099-R into two 1099-R's with the pro-rated portions for different things on each 1099-R so the total of both equal the original - TurboTax cannot handle two different destinations on a single 1099-R - (that is not supported).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
