Reminder: Taxpayers who took a
Required Minimum Distribution (RMD)
have until August 31st to Plan and Act
As a reminder to our clients and friends, if you took a required minimum distribution (RMD) in 2020 from certain retirement accounts you have until August 31, 2020 to decide if you are going to roll those funds back into a retirement account.
In addition, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020. The IRS states that this repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.
The CARES Act signed into law in March allows any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs in 2020. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. (This waiver does not apply to defined-benefit plans.)
If you think you are eligible to return a distribution, or if you have any questions or concerns, please reach out to your RINA tax professional.
The official IRS statement can be found here.: