Does anyone know if it is possible to repay an early distribution from a union-run annuity (considered pension I believe for these tax purposes) into my own personal traditional IRA to offset the taxes I would otherwise have to pay on this distribution?
I have read every instruction I can find from the IRS and elsewhere and understand the general topic well. I understand the options of ratably paying the taxes over 3 years, etc. However, no where does it state whether the repayment must go back to the SAME account with which it was withdrawn?
The only language from the IRS I can find on this matter is the following: "At any time during the 3-year period that begins the day after the date you received a qualified 2020 disaster distribution, you can repay any portion of the distribution to an eligible retirement plan that accepts rollover contributions." & "In general, yes, you may repay all or part of the amount of a coronavirus-related distribution to an eligible retirement plan, provided that you complete the repayment within three years after the date that the distribution was received. If you repay a coronavirus-related distribution, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer so that you do not owe federal income tax on the distribution." It says in multiple places this will be treated as a rollover in IRAs with the 60 day limit extended to 3 years. Therefore, I am hoping to just put money into my Traditional IRA as a rollover then claim this somewhere on both my 2020 and 2021 taxes.
There was one blog that said the repayment can be to any retirement account.
However, when I asked FreeTaxUSA about this, the agent claimed the repayment must be made to the same account from which it was withdrawn, otherwise it will not be credited against my tax liability.
Has anyone come across this situation yet or no where I could go to find the answer? Does the IRS have a tool to ask questions? I'm hoping Vanguard may know the answer to this as that is where I want to put the money
Thanks for any help,
Gary
