Don’t forget! Unwanted 2020 required minimum distributions (RMDs) can now be repaid via rollover to an IRA or company plan by Aug. 31, 2020.
Normally, RMDs cannot be rolled over. However, the CARES Act waived 2020 RMDs (and first-time 2019 RMDs delayed until 2020) from IRAs and defined contribution plans. For this reason, amounts received in 2020 that would have been RMDs are now eligible for rollover.
Many of you might have already received RMDs before the CARES Act was signed into law. If you don’t need that money, you should repay those amounts back into your IRA to avoid paying taxes on the RMD.
How often in life do you get a second chance to reduce your income taxes???
The clock is ticking. If you have received IRA distributions this year, and you think it might make sense to return them, call the office to discuss next steps. We need the check deposited back into your IRA by Aug. 31, 2020… no exceptions!
PS—These RMD repayments will not count against the once-per-year rollover rule. The IRS also carved out an exception to allow non-spouse beneficiaries to repay inherited IRA RMDs. Please call the office if you have any questions. Tick…tick…tick…