Hello-
Client distributed a CRD from a 401k (current employer) and a 403b (prior employer). The 403b has lower expenses and better investment options. If the custodian allows, can we recontribute the CRD for both the 401k and the 403b into the 403b of a prior employer?
Thank you!
Okay, thank you! I just learned some new information. They did not actually take a distribution from the 403b- only the 401k. My understanding is they can still recontribute the 401k CRD to the 403b if the custodian allows correct?
Okay, thank you! I just learned some new information. They did not actually take a distribution from the 403b- only the 401k. My understanding is they can still recontribute the 401k CRD to the 403b if the custodian allows correct?
Permalink Submitted by Alan - IRA critic on Thu, 2021-05-13 19:51
Yes, if the 403b administrator will accept CRD repayments. They are not required to. Most CRDs from employer plans end up being repaid to an IRA since the vast majority of IRA custodians will accept CRD repayments. Note that repayment deadline is 5/17 (or 10/15 if an extension is filed by 5/17) if the repayment is to be credited to the 2020 income share (1/3 or 100%) of the CRD.