Payback of Corona Virus Related Distribution
Would it be allowable and nontaxable to payback the $100,000 Corona virus related distribution to the IRA account that the distribution was taken from, by doing a rollover from a 403(b) account back into the original IRA?
Permalink Submitted by David Mertz on Wed, 2023-07-12 21:28
No. A rollover cannot be treated as a repayment of a CRD or any other type of disaster distribution. Although it doesn’t make sense to do so, using money from the 403(b) to repay the CRD would require taking a regular taxable distribution from the 403(b) and using the cash (which would now no longer be retirement funds) to make the CRD repayment.