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Important 2020 RMD Information

July 02, 2020

It’s been a busy summer for the U.S. Treasury and the IRS as they continue to issue new guidance for several provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As you know, 2020 RMDs have been suspended. However, for clients who took RMDs for the year before the CARES Act was passed, we now have more information regarding your options. 

Any Unwanted 2020 RMDs May Be Repaid by August 31, 2020

Due to the timing of when the CARES Act was enacted, individuals who took their RMD in January and/or those who were taking their RMDs monthly could not redeposit their funds because of certain timing rules. The IRS helped by extending the redeposit window to August 31 and temporarily waiving restrictions on the number of rollovers permitted in a 12-month period. Therefore, January RMDs and other monthly 2020 RMD withdrawals can be packaged and sent back to the account no later than August 31, 2020. The option to repay an RMD was also given to non-spouse beneficiaries of retirement accounts. An important caveat: while RMDs originating in employer-sponsored retirement plan may be moved back to the same plan or an IRA, RMDs that came out of IRA accounts must be repaid back to the same IRA account.

This continues to be a rapidly changing environment. We are keeping a close eye on these and other important developments and will update you accordingly. My team and I are here to continue to help you pursue your financial goals during these unprecedented times.  If you have any questions on your options do not hesitate to call.

Stay safe, stay healthy, and stay the course.