Have You Missed Your Three-Year Period?
The 2020 CARES Act allowed you to take a distribution from your IRA or retirement account without penalty. But you could pay it back within three years and owe no tax. Did this apply to you?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allowed any participant in an IRA or retirement account to take distributions during 2020 as long as they were affected by the virus. The ability to take these distributions was broad and almost anyone could qualify.
The benefit of these distributions was that no 10% penalty was owed, and you had up to three years from the date you received the distribution to pay it back and owe no tax. Also, the income taxation was over a three-year period. One-third in 2020, 2021 and 2022 or you could elect to have it all taxed in 2020.
If you took distributions after this date in 2020, you could still roll over the distributions back into the appropriate account. If you are able to do this, then you can file amended tax returns using Form 1040-X for 2020, 2021 or 2022, depending on how you elected to have these distributions taxed.
If you took the distribution before this date in 2020, then you are too late.