Qualified COVID-19 Distribution: Repayments made i...
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mrtmpetty
Returning Member

Qualified COVID-19 Distribution: Repayments made in 2020 (and into 2021,2022)

Question on the following scenario:

 

If I took a Qualified CARES distribution from my employer sponsored 401K plan on Sept 29, 2020 but didn't stop making regular paycheck contributions to the plan the remainder of the year...  Are the regular contributions to plan for the balance of the year (Oct through Year-end) considered "repayment" of the Covid-19 distribution?

 

And to continue on that line of thought...  Will my regular contributions going forward into 2021 and 2022 be treated as repayments as well.  If so.. I assume that I will need to file amended returns for 2021 and 2022 to report those contributions as "repayment" of the COVID-19 distribution taken in 2020.

 

If this is not the case... how do I differentiate "normal" contributions to my plan and "repayments"

 

Thanks for any clarification and/or confirmation that I'm understanding this.

 

 

2 Replies
LaVicke
Level 2

Qualified COVID-19 Distribution: Repayments made in 2020 (and into 2021,2022)

If the contributions were done pre-tax, they are not seen as repayment. Repayment must be done with after-tax dollars. 

mrtmpetty
Returning Member

Qualified COVID-19 Distribution: Repayments made in 2020 (and into 2021,2022)

The contributions in this case are NOT pre-tax (401K - Roth account).  

 

So I will sum up my contributions made since the COVID-19 Distribution/Withdrawal date.   Then check the  "..repaid part of the distribution" box in the TurboTax interview page and use that sum as the amount repaid in 2020.

 

Thank you...

 

 

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