@tobe2017 wrote:
Thank you very much. What confuses me is to that I would need to return the distribution with after tax money? Especially since I would get taxed again upon starting to withdraw that money in retirement?
If you take a distribution which is later returned, the distribution is removed from your taxable income, as if the distribution never happened. Since the returned distribution is not taxed as income, you can't take a deduction for the return, because you can't subtract an item from your taxable income that was never included in your taxable income to begin with.
