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March 1, 2021
Question

COVID 401K withdrawal/repayment

  • March 1, 2021
  • 1 reply
  • 0 views

My spouse took a Cares Act withdrawal ($52,300) from his 401K.  We are opting to distribute over three years ($17,433 per year).  For 2020 he paid $11,632 into his 401k.  Is this amount (11,632) considered a partial payment of the distribution?  Thank you.

    1 reply

    DMarkM1
    March 1, 2021

    No, it is not.  You will need to work with your plan administrator to designate a return of distribution.  You have until 15 Apr (before filing your return) to designate a return of distribution and include that in your 2020 tax return.    

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