Can a coronavirus-related distribution from a pre-tax account be redeposited to a Roth IRA?

Yes, in fact, a redeposit of a coronavirus-related distribution may present an Interesting planning opportunity. An eligible individual who was already considering the conversion of a traditional IRA to Roth, could possibly take a coronavirus-related distribution, deposit it to Roth IRA and spread the tax liability over three years using the distribution rules under the CARES Act.

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.