dmertz
Level 15

Retirement tax questions

The code M for an offset distribution means that you have until this due date of your tax return, including extensions, to come up with some or all of the money to roll the distribution over to a traditional IRA (or a qualified retirement plan).  Whatever amount you rollover is an amount on which you will continue to defer taxes and avoid the early-distribution penalty.  Whatever amount you are unable to roll over by the deadline remains distributed and subject to early-distribution penalty.