dmertz
Level 15

Retirement tax questions

Even though the Roth IRA distribution would not otherwise be taxable because it is no more than your contribution basis, the distribution must be reported as a CRD on Form 8915-E which will make it eligible for 3-year repayment and allowing it to be disregarded with respect to the one-rollover-per-12-months limitation.  If you don't report it as a CRD, say, because you do not meet the requirements to be an affected individual, putting it back in the Roth IRA would be an ordinary rollover subject to the 60-day rollover deadline and the one-rollover-per-12-months limitation.

 

As a side note, I'll bet that TurboTax will not be properly adjust your Roth IRA contribution basis when you repay the distribution, so you'll want to pay attention to that.

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