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Level 1

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

I inherited an IRA from my father in 2017.  In 2018, I needed to take a distribution and closed the account.  I am receiving further inheritance, not in the form of an IRA, but could I use a portion of this money to put back into an IRA or a previously closed 401k to reduce my taxes in 2018?

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Accepted Solutions
Level 20

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

A distribution paid to a non-spouse beneficiary can never be rolled over, i.e., it cannot be returned to a retirement account to avoid taxation.

5 Replies
Level 20

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

Sorry no.  You only had 60 days to repay.
Level 19

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

you can contribute to an IRA for yourself  and your spouse up to the amount of your earned income or the limits, if you are eligible
Level 19

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

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Level 20

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

A distribution paid to a non-spouse beneficiary can never be rolled over, i.e., it cannot be returned to a retirement account to avoid taxation.

Level 1

I took out money from an inherited IRA in early 2018, can I repay that and reduce my tax burden?

You cannot, at this point, repay the IRA distribution to avoid paying taxes on it.