care act repayment - definition of 3 years

Forum|Forum|2 years ago
December 19, 2023
2 replies
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I took distribution of retirement funds through the Cares Act on Oct 1, 2020. I repaid the full amount of the distribution on Oct 30, 2023. The rules to refile amended tax returns state the distribution has to be paid back in "3 years". Does that mean I am within 3 tax years and qualify to restate my tax returns or am I late by 30 days?

Best answer by dmertz

The repayment must be made within the 3-year period that begins on the day following the day of the distribution. In your case you missed that deadline by 29 days, so the deposit must be treated as a regular contribution, not a repayment of the October 1, 2020 distribution, likely an excess contribution that you'll need to have returned to avoid penalties.

Anonymous_

Employee

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dmertzAnswer

Employee

lakpld00

Does the 3 year period start on the day the funds are in my bank account, or from the day Fidelity cuts the check? I had a mailing issue repaying my balance, and its going to come down to the wire getting it repaid. An extra couple days to get the check in would help in this case.

IRS website states "within three years after the date that the distribution was received." "Received" in this case is relative