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IRA RMDs - roll back into IRA

I was reading Money Talk News the other day and saw this webpage about RMDs and the CARES act. I knew about the age for RMDs being raised to 72 and the option to NOT take an RMD this year, but this "roll back RMD" is something i had not read or heard about. it might be helpful for some folks.

https://www.moneytalksnews.com/things-that-are-cheaper-due-to-the-coronavirus/
9 Things That Are Cheaper Due to the Coronavirus

#8. Required minimum distributions
The CARES Act waived required minimum distributions, or RMDs, in 2020. That means folks who normally would have to take an RMD this year aren’t required to withdraw money from their retirement accounts this year.

If you choose to skip your RMD in 2020, your taxable income likely will be lower this year. That means you are likely to see some tax savings when you file your return in 2021.

If you withdrew an RMD this year and wish to return it to your retirement account, you have until Aug. 31 to “undo” the withdrawal.

 

here's the IRS page about it:

https://www.irs.gov/newsroom/irs-announces-rollover-relief-for-required-minimum-distributions-from-r...

And a Vanguard.com page about it:

https://investornews.vanguard/what-the-cares-act-means-for-you/

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Re: IRA RMDs - roll back into IRA

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Re: IRA RMDs - roll back into IRA

Careful.  This has to be done right if you don't want your original RMD to be taxable.  I wanted to simply move the money from my taxable account back to my IRA, but Schwab told me no, it had to be done in a certain way and then they handled it behind the scenes.

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Re: IRA RMDs - roll back into IRA


@gina123 wrote:

Careful.  This has to be done right if you don't want your original RMD to be taxable.  I wanted to simply move the money from my taxable account back to my IRA, but Schwab told me no, it had to be done in a certain way and then they handled it behind the scenes.


It has to be coded as rollover into T-IRA. Vanguard online allows checkbox for that; at other brokerages, you have to call and indicate that - their websites have boxes for annual contributions only and won't even accept amounts over annual limit.

Also, this is allowed by IRS for 401k/403b, but all plans are not playing. So, rollover from those would have to go into T-IRA.

YBB
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Re: IRA RMDs - roll back into IRA


Spoiler
 
@yogibearbull wrote:

@gina123 wrote:

Careful.  This has to be done right if you don't want your original RMD to be taxable.  I wanted to simply move the money from my taxable account back to my IRA, but Schwab told me no, it had to be done in a certain way and then they handled it behind the scenes.


It has to be coded as rollover into T-IRA. Vanguard online allows checkbox for that; at other brokerages, you have to call and indicate that - their websites have boxes for annual contributions only and won't even accept amounts over annual limit.

Also, this is allowed by IRS for 401k/403b, but all plans are not playing. So, rollover from those would have to go into T-IRA.


What trustee will not accept rollover IRAs? I have made IRA rollovers to several IRA trustees simply by checking the rollover box. All IRA custodians want IRA rollovers.

 

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Re: IRA RMDs - roll back into IRA

 

 

If you want to roll a RMD back into the IRA, don't take chances. Call the custodian and have them do it for you. Simple as that.

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