If a participant took a 401(k) coronavirus-related withdrawal and didn’t use all or part of the money, can the funds be deposited to his/her IRA instead of back into the 401(k)? 

Individuals may repay coronavirus-related distributions, tax-free, over three years beginning with the day funds are received. Repayments may be made to an eligible retirement plan or IRA. Coronavirus-related distribution repayments made within the three-year period will be treated as having satisfied the general 60-day rollover requirement. 

BACK

Cetera Retirement Plan Specialists is a third-party administrator and may not offer tax, legal or investment advice. Plan sponsors should consult their own tax, legal or investment professionals.