How does the IRS consider paying back a Covid19 distribution? If for example, you take a $36,000 distribution from your 401K in 2020 and have Fed Tax with held of 10%. You take the income over three years of $12,000 (2020-2022).
If you contribute $11,000 to your 401K in 2020, you are only taxed on $1,000 difference? If you contribute more than $12,000 in 2021 you do not include the $12,000 as income?
And I understand, the $36,000 is not subject to a 10% penalty according to the Cares Act?
