RMDs May Be Rolled Over Through August 31

August 11, 2020

As a result of the CARES Act and additional guidance from the IRS, the Required Minimum Distribution (RMD) rules for 2020 have changed.

If you’ve already taken an RMD in 2020:

  • Should you not need the money and want to reduce your taxable income, you now have the opportunity to put that money back into your retirement account, but you must do so on or before August 31, 2020.

If you haven’t taken an RMD in 2020:

  • You don’t need to take an RMD in 2020, but you may do so if you choose.

For IRA owners or beneficiaries, if the RMD came from an IRA account, the funds must be rolled over (or re-deposited) into that same IRA account. If the RMD came from a different type of retirement account, you have a bit more flexibility. Other typical IRA rollover limitations (only one distribution rollover per 12-month period; restrictions on inherited IRAs) do not apply to 2020 RMD re-deposits.

The new guidance for the 2020 tax year applies to most retirement plans, but there are some exceptions. Please contact your Geffen Mesher tax advisor for additional information and specific guidance based on your personal situation.

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