What is a Qualified Military Reservist Recontribution?
Qualified reservists called to active duty after September 11, 2001, for a period of at least 180 days or more, may take penalty-free distributions from IRAs and from deferrals in IRC Sec. 401(k) plans, 403(b) plans, and certain pre-ERISA plans under Sec. 501(c)(18). This applies to distributions taken between the date of the order or call to duty and the end of the active-duty period. Such qualified reservists may recontribute these distributed amounts to IRAs, but not to the other retirement plans listed above, by the later of August 17, 2008, or two years after the end of the active-duty period. The applicable IRA contribution limits do not apply and a qualified reservist may not take a deduction for the recontributed amounts.
