Cares Act 401k distribution, repayment
We took 401k withdrawals under the Cares Act hardship provision. We are under the impression we can pay it back, but the 401k accounts are closed. Can we now pay back any IRA or 401k to avoid the taxes we are now required to pay? How do we do this?
Terry Says
No, you should have checked the rules of your company before the withdrawal. If you took it all out and the account and if the account is closed there is no way to return the money. But if you’re under age 59-1`/2, the 10% penalty was waived.
Read this article for details of that provision.
