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IRA Rollover deadline for Required Minimum Distributions (RMDs) extended to August 31, 2020

August 24, 2020

 
 
IRA Rollover deadline for Required Minimum Distributions (RMDs) extended to August 31, 2020 Header Image
Disclaimer: This information is provided as a public service to highlight a matter of current interest. It is not intended to constitute a full review of any subject matter, nor is it a substitute for obtaining financial or legal advice from an accountant or financial advisor, or an attorney.
 
In June, the IRS announced rollover relief for Required Minimum Distributions (RMDs) from retirement accounts that were waived under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The rollover deadline had been extended to August 31, 2020.
 
The CARES Act waives RMDs from defined contribution tax-qualified retirement plans and IRAs for 2020.  This includes 2019 RMDs for individuals with an April 1, 2020 RMD “required beginning date.”  RMDs from a defined benefit plan, however, are not eligible for the waiver.
 
Individuals who received mandatory distributions from qualified retirement accounts earlier this year now have until August 31, 2020 to roll those funds back into a retirement account without penalty.  In addition to the rollover opportunity, an IRA owner or beneficiary who's already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution by August 31, 2020.
 
Although RMDs generally cannot be rolled over, 2020 RMDs are treated as voluntary distributions and are therefore eligible for rollover treatment.  The IRS notice provides that this repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.
 

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