Q. My wife left her government job a number of years ago and withdrew the money from her FERS account. She re-entered government service a few years ago. She then requested the redeposit amount required to bring her FERS account whole again. To make her FERS redeposit payment, she took a withdrawal from her IRA.
We received a 1099-R from her IRA firm showing the withdrawal and we will need to report on our taxes as income. Since the money went back into FERS, can I deduct that amount as if it were being rolled over into an IRA?