Will an individual have to prove that amount redeposited into a retirement account is an earlier coronavirus-related distribution at the time the amount is rolled back into an IRA or an employer-sponsored plan?

The Act doesn’t prescribe such verification. The IRS is expected to issue guidance similar to that made available for Hurricane Katrina related distributions; there, an individual was requested to self-certify which was sufficient unless a plan administrator had knowledge contrary to that self-certification.

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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.