diff --git a/lib/elixir/lib/module/types/expr.ex b/lib/elixir/lib/module/types/expr.ex
index dc6c0638e6..225f50309b 100644
--- a/lib/elixir/lib/module/types/expr.ex
+++ b/lib/elixir/lib/module/types/expr.ex
@@ -596,7 +596,8 @@ defmodule Module.Types.Expr do
             {opt_union(body_type, acc), Of.reset_vars(context, original)}
           else
             error = {:badtimeout, timeout_type, timeout, context}
-            {opt_union(body_type, acc), error(__MODULE__, error, meta, stack, context)}
+            context = error(__MODULE__, error, meta, stack, context)
+            {opt_union(body_type, acc), Of.reset_vars(context, original)}
           end
       end)
       |> dynamic_unless_static(stack)