Client took two distributions from 2 separate retirement accounts for 100K each, can one distribution be recontributed.

[taxxman02]

Client took two distributions from two separate retirement accounts for 100K each back in June of 2020. I informed him only the first 100K is eligible for the 3 year averaging and no 10% penalty. Can he deposit the second 100K back into his account before we file his return, would this be considered a recontribution or is that for only one distribution.

[dkh]

page 3 of 8915-E instructions have repayment requirements

https://www.irs.gov/pub/irs-pdf/i8915e.pdf

[Just-Lisa-Now-]

The second 100k wasnt a Covid distribution, isn't it too late to roll back into the account?

[qbteachmt · Accepted solution]

It isn't "recontribution." It's Rollover. The three-year Rollover provision was extended for covid distributions. Your taxpayer, for their Second distribution, was supposed to follow the 60-day rule.

Try this topic:

https://www.irs.gov/retirement-plans/retirement-plans-faqs-relating-to-waivers-of-the-60-day-rollove...

That includes the waiver provision. I would think the covid rules were confusing enough to typical taxpayers that this would be granted. You won't know if you don't try.