Coronavirus-Related Distribution (CRD) from Roth IRA Contributions

[JohnnyNoDough]

Last year (2020), I took a Coronavirus-Related Distribution from my Roth IRA in the amount of $11,500.  I had this exact amount in this Roth IRA account as previous years' CONTRIBUTIONS, which I understand I could take out at any time without penalty.  I could even return it in within 60 days with the 60-day rollover rule.  However, due to my financial struggles of 2020, I couldn't put it back in 60 days.  I would like to consider this a Coronavirus-Related Distribution (CRD) so I have the opportunity to pay it back over 3 years. However, I see rules that I need treat this distribution as income over 3 years.  Since these were also contributions to a Roth IRA I already paid taxes on this money. Do I need to pay taxes on it again? Or can I simply choose to pay it back in my account fully, partially, or not at all over the next 3 years without penalty or double taxation?  Thanks so much!

[CatinaT1]

You will report this on a Form 8915-E.  The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act.  So this form cannot be included in the TurboTax program.  You will not be able to proceed until the form is available.

The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.

We estimate it will be sometime in February 2021 before the form is available.  You can watch this link for the form availability.  Currently, the form is not listed here since there is no estimated date.  Once there is, you will find the form listed with the date available.  

IRS forms availability table for TurboTax individual (personal) tax products

Additionally, the IRS will not start processing returns until February 12, so waiting for this form is not slowing down the processing of your return.

[JohnnyNoDough]

Thank you. So I suppose this form will answer my question?

[CatinaT1]

A return of contributions is never taxable, so you won't pay tax on that again.  You can recontribute that money at anytime.

[JohnnyNoDough]

Thanks again. My understanding is that I have to return any IRA withdrawals within 60 days under the 60-Day rollover rule.  I cannot recontribute any withdrawals I took out of my Roth IRA at any time after 60 days, even if my withdrawal was a contribution.  And by recontribute, I mean it to not count as the previous or present year contribution with a max of $6,000.  I am wondering why nobody told me about this and I cannot find this on any website that "You can recontribute that money at anytime." Is there an IRS.gov link you might know to verify this?   Thanks so much!

[AmyC]

You have 3 years to repay the money. You can continue to contribute the maximum as this is a repayment, not a contribution. Please see Coronavirus-related relief for retirement plans and IRAs questions and answers.