Deadline to return a Covid Distribution or Loan
Hello, can we confirm what the deadline is to return a distribution or loan hat was taken for Covid-19 reasons. Is it three years from the day after the distribution was taken or the have up until 12/31/2023 to return the funds?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2023-12-04 17:55
The deadline is 3 years starting on the day after the CRD was received.
Permalink Submitted by Kevin O'Hearn on Tue, 2023-12-05 04:14
Does the “same property rule” for rollovers apply to CRD repayments? If a client distributed cash for the CRD, does the repayment need to be made in cash? Or can in-kind shares be returned to replace the cash CRD? Thank you.
Permalink Submitted by David Mertz on Tue, 2023-12-05 12:36
Repayments of CRDs are treated as rollovers but without the 60-day limitation, so the repayment must be in cash. Even if it was permitted, depositing shares in-kind would make no sense because any cost basis in the shares would be lost.