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Returning Member
posted Feb 15, 2025 3:00:40 PM

I took an early distribution of $5.1K from my Trad IRA in 1998 for a qualified first-time homebuyer distribution. I have all the paperwork to support this. Can I repay?

Will the repayment count toward my annual contribution to my Trad IRA? I am still able to contribute to an IRA (below age 70).

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2 Replies
Expert Alumni
Feb 15, 2025 3:33:42 PM

If you replace the funds within 60 days of the distribution, it will be a rollover and it will not count as a contribution.  However, if you are outside the 60 day window, it will count as a current year contribution which counts toward your annual amount. 

Level 15
Feb 16, 2025 7:36:20 AM

The deadline to put any of the money taken out in 1998 back into an IRA passed more than 25 years ago.  Any money that you put into a traditional IRA now would be a new, unrelated contribution.