RMDs Rollover Relief Deadline
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act payment of Required Minimum Distributions (RMDs) from qualified retirement plans and IRAs are waived for 2020. The law was passed in March 2020 when many individuals had already taken out their RMDs. If you’ve already taken out a required minimum distribution (RMD) this year (2020) from a retirement account you now have the opportunity to roll those funds back into a retirement account.
There is a grace period that allows for RMDs to be “rolled over” into a new IRA. The rollover period was recently extended to August 31, 2020, to give taxpayers additional time to take advantage of this opportunity. This provision applies to individuals that are already receiving RMDs and individuals who are required to begin in 2020. Generally, taxpayers must begin taking a required minimum distribution (RMD) from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA when they reach age 72 (70 1/2 if they reached 70 ½ before January 1, 2020).
In addition to the rollover opportunity, 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. This repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.
