Loan and Distribution Repayment
Let's get back on course
Taking money from your retirement account may not have been in your plans in 2020. But with the new year comes a new start — and we want to help you move forward.
Taking money from your retirement account may not have been in your plans in 2020. But with the new year comes a new start — and we want to help you move forward.
If you took a coronavirus-related distribution (CRD) from your plan in 2020, you can avoid a potential tax hit by putting some or all of the CRD back in your account within three years from the date you took the distribution. We’ve added a CRD repayment form to your retirement account. Just log in and click Forms on the left side of your account overview page. If you have trouble, call our Customer Care team at 800-755-5801.
As a reminder, if you requested a suspension of your loan repayments, those will resume in January 2021. Additional information will be sent separately.
FAQs
If you have questions on how to make repayments, most answers are provided below. Transamerica is here to help every step of the way.
Where can I find the repayment form?
For a coronavirus-related distribution (CRD), you can find the repayment form after you log in to your account. Next to the applicable account, click Details, then click Forms. You can also request a form by contacting the call center at 800-755-5801.
When do I pay taxes on coronavirus-related distributions?
- Taxes on your CRD can be spread equally over a three-year period that starts with the 2020 tax year. Unless you elect to pay all of the taxes in a single year, you will need to pay taxes on one-third of your CRD taken in 2020 by April 15, 2021 (for the 2020 tax year), one-third by April 15, 2022 (for the 2021 tax year), and one-third by April 15, 2023 (for the 2022 tax year).
- Within three years from the date of your distribution, any amount of the CRD can be rolled into your employer’s retirement plan account, subject to any applicable rollover rules and restrictions, or into an IRA.
- You will not need to pay federal income taxes on any portion of the distribution that you roll into a retirement plan or IRA; the IRS will provide guidance on how to report amounts rolled over in a future tax year that may relate to the portion of the distribution that was reported as taxable paid in a prior year.
How much time do I have to repay a coronavirus-related distribution?
You may repay all or part of the coronavirus-related distribution to an eligible retirement plan or IRA, provided you complete the repayment within three years from the date of the distribution. If you repay some or all of a CRD, the distribution will be treated as though it were repaid in a direct trustee-to-trustee transfer, so you will not owe federal income tax on the portion of the distribution you roll back into a plan or IRA. We recommend you consult with a tax professional to see how your particular tax situation will be impacted based on how much you repay and when.
How are loan repayments different than distributions?
If you suspended payments on a loan from your retirement plan, payments will resume in January 2021. Transamerica will send further communications with information about your revised amortization schedule and repayment start date. As a reminder, you can log in to your account and review Your Retirement Outlook® at any time. If feasible, we recommend maintaining contributions at a level that keeps you on course toward your income goal in retirement.
Contact Us
Our customer care team is available Monday through Friday, 8 a.m. – 9 p.m. ET.
If you have an online account, please have your login information available.
Call us at 800-755-5801
Transamerica and its agents and representatives do not provide tax or legal advice. This material is for informational purposes and should not be construed as legal or tax advice. For legal or tax advice concerning your situation, please consult your attorney or tax professional.