401K Covid Distribution

[xkxdrubio]

Hello,  

I had taking out a distribution when I was furlough from my company and eventually was laid off.  I was fortunate to land another job after 5 months of looking.  Now I am able pay back the distribution, however when I contacted the previous employer they told me I couldn't since I no longer work there.  My current employer told me I couldn't add to their 401k.   My question is can I add the money back to an existing traditional IRA?  I know I'll need to amend my 2020 tax return because I had selected the option to split the taxes over three years.  is there a way I can put the money back to a retirement account?

Xavier

[Critter-3]

My question is can I add the money back to an existing traditional IRA?   YES you can.  

[Opus 17]

You can put the money into any qualified plan.  Make sure to tell the plan in advance that this is a repayment of a COVID distribution (a special type of rollover), and is NOT a regular contribution.  You may need to sign a form or make other special arrangements, especially since the money is not going back into the original plan.  If the payment is recorded as a new contribution, it will be subject to contribution limits and you won't get the tax benefits of returning the money under the CARES act.