topic Repaid IRA withdrawal in Retirement tax questions

Repaid IRA withdrawal

Snpdg — Thu, 16 Jul 2020 01:24:44 GMT

I fully repaid an IRA withdrawal within 60 days (taken in April 2020, returned May 2020 - can I get the tax my brokerage took out back on 2019 filing or do I need to wait until 2020 (i don't have a 1099-R yet)

Re: Repaid IRA withdrawal

Critter-3 — Thu, 16 Jul 2020 02:05:55 GMT

If you took out $1000 and they withheld $100 then you MUST put back the full $1000 now and wait for the refund of the $100 when you file the 2020 return. If you do not make up the taxes withheld and only roll $900 then only that amount will be considered rolled timely and you will pay taxes on the $100 you did not roll.

Re: Repaid IRA withdrawal

Snpdg — Thu, 16 Jul 2020 04:14:40 GMT

Thanks Critter-3, i did pay the full amount, including covering what they withheld. So i have to wait until filing 2020 to get it back?

Re: Repaid IRA withdrawal

Critter-3 — Thu, 16 Jul 2020 16:56:52 GMT

Yep that is your only option.

Re: Repaid IRA withdrawal

Opus 17 — Thu, 16 Jul 2020 17:08:34 GMT

@Snpdg wrote:

Thanks Critter-3, i did pay the full amount, including covering what they withheld. So i have to wait until filing 2020 to get it back?

Since the tax was paid in 2020, its reported on the 2020 tax return. However, you may be able to adjust your withholding or other tax payments to get it back before you file.

For example, if you paid $1000 in estimated taxes, and you are paid bi-weekly, you have about 12 pay checks left in 2020, so you could arrange to have $83 less withheld per paycheck for the rest of the year. That way you get the $1000 up front (more or less) instead of waiting until you file your return.

Just don't forget to put your withholding back to normal on 1/1/21.