Q. I am CSRS Offset. I withdrew my retirement funds years ago, and need to make a redeposit. I want to move money from my individual 401(k) to the Office of Personnel Management to make the redeposit. Will OPM report it to the IRS as a rollover, or will it be taxed as if I never re-deposited it?
A. Your redeposit must be made with after-tax money. It is not tax-deductible and your 401(k) custodian will report any withdrawal to the IRS as a taxable distribution.