COVID Distribution Repayment - Rollover

[Jess C]

Hi there, we are having a debate about the repayments of COVID distributions back into the plan, and if they should be coded as normal (pre-tax) or as after-tax.  I understand that ROTH has to be accounted for separately.  I believe that since the repayments offset the tax burden, the monies become pre-tax once again.  I can't find anything specific on this, so I thought I'd come to this forum for guidance.  Thanks in advance!

[Larry Starr]

1 hour ago, Jess C said:

Hi there, we are having a debate about the repayments of COVID distributions back into the plan, and if they should be coded as normal (pre-tax) or as after-tax.  I understand that ROTH has to be accounted for separately.  I believe that since the repayments offset the tax burden, the monies become pre-tax once again.  I can't find anything specific on this, so I thought I'd come to this forum for guidance.  Thanks in advance!

When contributed back under the rules, the money looks just like it did before it came out.  Given that situation, how can you show it as anything other than normal pre-tax funds?