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STILL TIME TO REVERSE YOUR 2020 REQUIRED MINIMUM DISTRIBUTION

STILL TIME TO REVERSE YOUR 2020 REQUIRED MINIMUM DISTRIBUTION

The CARES Act eliminated the requirement for required minimum distributions (RMD) for 2020 due to COVID-19 and its impact on the world economy. Initial IRS guidance provided an extension of the normal 60-day rollover rule to allow individuals who took an RMD anytime after February 1, 2020, to be able to put the funds back into the IRA or qualified plan without having to pick-up the distribution as income for 2020. Subsequently, the IRS issued Notice 2020-51 that expanded the ability to rollover RMDs to anyone that received an RMD in 2020 and further extended the rollover date.


If you have taken an RMD in 2020 and do not necessarily need the cash flow this year, you have until August 31, 2020 to return the funds to your qualified plan or IRA so that it will not be considered income for the tax year 2020. Please keep in mind that if you had withholdings from the RMD, you must contribute the gross amount back to your plan or IRA and not just the net amount you received.

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