care act repayment - definition of 3 years

[seoport]

I took distribution of retirement funds through the Cares Act on Oct 1, 2020. I repaid the full amount of the distribution on Oct 30, 2023. The rules to refile amended tax returns state the distribution has to be paid back in "3 years". Does that mean I am within 3 tax years and qualify to restate my tax returns or am I late by 30 days? 

[tagteam]

I will page @Critter-3 

[dmertz · Accepted solution]

The repayment must be made within the 3-year period that begins on the day following the day of the distribution.  In your case you missed that deadline by 29 days, so the deposit must be treated as a regular contribution, not a repayment of the October 1, 2020 distribution, likely an excess contribution that you'll need to have returned to avoid penalties.

[lakpld00]

Does the 3 year period start on the day the funds are in my bank account, or from the day Fidelity cuts the check? I had a mailing issue repaying my balance, and its going to come down to the wire getting it repaid. An extra couple days to get the check in would help in this case.

IRS website states "within three years after the date that the distribution was received." "Received" in this case is relative

[dmertz]

The 3-year period begins on the day after you have constructive receipt of the distribution.

Constructive receipt:

https://www.irs.gov/publications/p538#en_US_202112_publink1000270642

Note that December 30, 2020 is that last day that you could have received a Coronavirus-Related Distribution.

[lakpld00]

Thanks for that, but I'm not sure I fully understand the context of Constructive Receipt in my case. Fidelity shows a withdrawal on 12/28 and my TD bank account shows a deposit of those funds on 12/31. Can you help me with the deadline to repay this distribution? Thanks so much!!

[dmertz]

It's up to the custodian of the account to accept your claim that the repayment was made within the 3-year period, so you would need to check with them.  Perhaps you could make the repayment to an IRA at a local financial institution.  Fidelity also has local offices around the country where you might be able to make the repayment in person.