Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Oct 6, 2021 4:01:31 PM

Can a repayment back into an IRA for a premature COVID-19 DISASTER distribution be in stock, cash or a combination ?

0 7 1308
7 Replies
Level 8
Oct 6, 2021 4:56:24 PM

You can fund or repay funds to an IRA with stock.  You will have to pay back with cash or a check.

Level 2
Oct 6, 2021 8:03:27 PM

My question is regarding 'payback' into IRA for an early distribution for COVID-19 reason. Can the Payback be with stock and / or cash ( I know cash is acceptable )  - combo of stock and cash ?

Thank you.

-

Your response was ambiguous  - "You can fund or repay funds to an IRA with stock." Then you said you can only payback with CASH / Check.

 

Level 8
Oct 6, 2021 8:24:13 PM

Sorry for the typo, I meant to type cannot.

 

Level 2
Oct 6, 2021 8:39:06 PM

Please provide where you found that among the IRS regulations / code.

I've been using FORM 8915-E for instructions here, and that is 'silent' regards cash or stock. They just say 'payment'.

Thank you.

Level 15
Oct 7, 2021 6:11:36 AM

to payback a covid distribution you must return the assets you removed, but you can give it back to a different custodian, like Vanguard, which has this option online.
See IRS Instructions for Form 8915-E.

 

You have till Oct 15 to affect your 2020 tax return,

After that  it goes on the next tax return.

Level 2
Oct 7, 2021 6:21:22 AM

Can repayment be (partially) with shares of stock - value determined at the day of transfer at market's close. ??

Level 15
Oct 7, 2021 6:32:00 AM

I understand your question.

The instructions don't address this as I thought they did.

If you did not take the COVID distribution in stock (why would you ?) ,   I don't see how that would work, but ask your custodian.

 

Some custodians, like banks, won't know what you're talking about.