I am 25 years old.
I took a 2017 Disaster Distribution from a Traditional 401(k) account in 2018 due to hardship due to Hurricane Irma.
Do I need to repay it back (i.e. is it mandatory to be repaid) to an eligible retirement account in the future in order to avoid the 10% penalty?
I understand that I have a choice to make a repayment if I choose, but I am choosing not to make a repayment, and therefore, will there be any unfavorable tax repercussions due to that (e.g. paying any penalties?)
In other words, the literature in the Form 8915B instructions states that the tax-payer has a choice to make a repayment but does not clearly state that the tax-payer has a choice not to make a repayment.
