Required Minimum Distribution Waiver 2020 Explained
The CARES ACT waives 2020 RMDs. If you are the account owner and already took it sometime AFTER January 1, 2020, you can roll it back in, if desired. Inherited IRA? You have to keep it if you already took it this year. Please watch this <5 minute video for details.
New info 6.24.20 From Kitches.com about rolling unwanted RMDs Back.
Accordingly, on Wednesday, June 23rd, the IRS has recently released a new “Guidance on Waiver of 2020 Required Minimum Distributions” (Notice 2020-51), which aims to benefit people who may have run into problems when trying to roll back unwanted 2020 RMDs. While the IRS released Notice 2020-23 in April 2020, which extended the 6o-day rollover rule for distributions taken on or after February 1, 2020 to the later of 60 days after receipt of the distribution, or July 15, 2020, individuals who took distributions prior to February 1 were excluded from the opportunity were unable to take advantage of the extended rollover allowance. Notably, Notice 2020-51 has extended the 60-day-rollover window to the later of 60-days after a distribution was received or August 31st, allowing for all unwanted 2020 RMD distributions to be returned. It also excludes rollovers taken in 2020 from being counted as a rollover for purposes of the once-per-year rollover rule. And while beneficiaries have been explicitly prohibited from completing 60-day rollovers under previous legislation, beneficiaries who have taken unwanted RMDs this year are now able to repay those RMDs until as late as 8/31/2020.
Ultimately, the new guidance just released by the IRS provides a fair and favorable outcome for people who took their RMDs earlier this year, as those individuals should not be penalized for being proactive and complying with the RMD rules early during the year.