I freaked out because I lost my job and I cashed my 401K only 21K back in July 2020. Now I am employed since oct 2020 and I wish to return the whole thing back, my previous 401K is now closed as I no longer work for that employer and I cash out. I have a new 401K with fidelity, I wonder how I can return the 21K all at once back to my new 401K. Thank you
The problem is that you only have 60 days to rollover those funds to a new retirement account. You are past the point of that grace period.
My only suggestion is report the 1099R and then in the follow up screens that ensue, there is a screen that says Tell us if any of these uncommon situations apply. Here is where you can select I took out this money because of a qualified disaster (includes COVID-19). If you select this, you will have an option to prorate that income over a three-year period.
Right now because of the changes in Congress, you won't be able to declare that now because the form (8915-E) that is used to make this election is not available until 2/24. if you are interested in making this election, Please sign-up here and we will email you once the form is live.
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if you took a true COVID distribution. i.e. you meet the qualifying conditions,
you have three years to put the money back into your 401k.
you'll have to ask Fidelity what forms you'll need.