I Took A Coronavirus-Related Distribution (CRD) I No Longer Need; How Do I Put It Back?

April 7, 2021


In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which allowed for a CRD from retirement plans and IRAs. As some get back on better economic footing, they may look to repay the CRD and reestablish their retirement savings.


The CRD allows qualified individuals to access up to $100,000 in aggregate from their IRAs or qualified retirement accounts without penalty and withholding. The CRD is tax-favored in that taxes on the distribution are spread over the 2020, 2021, and 2022 tax years, unless an election is made to include the taxes entirely in 2020.

An individual may recontribute all or part of certain coronavirus-related distributions to an eligible retirement plan within three years beginning on the day after the date the distribution was received. Repayments will be treated as though they were eligible direct rollovers. Amounts repaid are not subject to any contribution or rollover limits. The distribution is treated as though it was repaid in a direct trustee-to-trustee transfer, so an individual won’t owe federal income tax on the distribution. To claim a refund for any income taxes paid on amounts previously included as income but then were repaid within three years, the request can be submitted by filing an amended return for that tax year(s).


Types of plans to which a CRD can be returned are:

If the plan allows for rollovers, it should be able to accept a return of a CRD.

Financial professionals can provide key insights to help clients as they determine the feasibility of repaying a CRD. Once repaid, clients can continue adding to their portfolios and reestablishing their retirement nest eggs.


This material is educational and intended for an audience with financial services knowledge.


For more information on retirement-planning strategies, please contact the Retirement Strategies Group at (800) 722-2333, or email us at RSG@PacificLife.com



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