That is correct. Your pre-tax contributions to another account are not going to count as a recontribution of the covid-related distribution. The repayments do not have to come from the same bank account that your distribution was deposited to.
You’ll have 3 years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount to any qualified plan within that time, you’ll be able to claim a refund on those taxes.
The CARES Act provides that any part of a COVID-19-related distribution is eligible for tax-free rollover treatment to be recontributed to a qualified plan within three years of receipt and therefore excluded from income. Any amount recontributed is treated as a direct tax-free rollover where eligible or as an indirect rollover with the typical 60-day requirement adjusted to three years. A recontribution is not subject to the one-rollover-per-year limitation.
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