Hal_Al
Level 15

Education

Case A Question: By law, should I just feel no guilty of putting the $5,250 reimbursement into my checking account, or put it back to Roth IRA by certain IRS requirement?

Case A Answer:  The 60 days is up, you cannot rollover the $5250 into your Roth IRA.  However, if you haven't already made a Roth contribution, for 2020, you can do so at that time. Note: the technicality is you are not "putting the money back" (rolling it over), you are making a new contribution.  Whether you put the $5250 into your checking account or Roth, the $5250 is still tax free*. There's no guilt involved.

 

Case B: Question: By law, should I just feel no guilty of putting the $5,250 reimbursement into my checking account, or put it back to Roth IRA by certain IRS requirement?

Case B Answer:  The answer is the same as case A.  By law, you have until 4-15-21 to make a 2020 Roth contribution. 

 

*If your concern is that getting tax free assistance, and a penalty waiver, is double dipping  (2 benefits for the same money), that is allowed in this circumstance.

Since the $5250 is tax free, you cannot claim an education credit on the same amount.  That would be double dipping.

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