Repayment of Cares withdraw from 401k
If a client took funds from their 401k during the covid they were able to defer the taxes over 3 years and could also re contribute the funds. Their provider changed custodians and they are not allowing the contributions for that person. What is the best way to contribute? If they have a traditional IRA could they put it into that, and how would they code it as some companies (nfs etc) may not have a code for that? Thoughts, and best way for them to proceed.
We have emailed questions in but never hear back from anyone, hopefull this is monitored a little more closely.
Thanks for you anticipated assistance.
Permalink Submitted by Alan - IRA critic on Sat, 2023-01-07 18:21
Client will need to make the re contribution to their IRA, and must report to the IRA custodian that the contribution is from a CRD. The custodian must then complete Form 5498 with the correct amount and code in Boxes 14a and 14b. If client returns more than the amount that would have been included on the 2022 return, the 2020 and 2021 returns will need to be amended to receive a refund. The appropriate Form 8915 will also have to be completed for the 2022 return or any amended returns.
Permalink Submitted by mark daviau on Sat, 2023-01-07 18:44
Very helpful