dmertz
Level 15

Retirement tax questions

Yes, a CRD from your 401(k) can be repaid to an IRA.  The repayment is not a regular contribution and does not count toward the regular IRA contribution limit.  You must tell the IRA custodian that it is a repayment of a CRD and not a regular contribution so that the custodian codes it correctly on Form 5498.