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Frequent Contributor

Re: RMD requirement suspended

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

"IR-2020-127, June 23, 2020

WASHINGTON — The Internal Revenue Service today announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020.

The 60-day rollover period for any RMDs already taken this year has been extended to August 31, 2020, to give taxpayers time to take advantage of this opportunity.

The IRS described this change in Notice 2020-51 (PDF), released today. The Notice also answers questions regarding the waiver of RMDs for 2020 under the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act.

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.

In addition to the rollover opportunity, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020. The 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.

The notice provides two sample amendments that employers may adopt to give plan participants and beneficiaries whose RMDs are waived a choice as to whether or not to receive the waived RMD."

@Bentley  Take a look at the language on the above. It appears to say that you can do so.


@Bentley wrote:

@Intruder 

Trudy,

 I turned 70.5 in first half of 2019. I took a partial distribution in September 2019. I completed my 2019 RMD in Jan 2020.

1.) Would I be allowed to return Jan 2020 ( for 2019 RMD ) to TIRA?


 

Capital
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Frequent Contributor

Re: RMD requirement suspended

Thanks Capital

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Participant ○○○

Re: RMD requirement suspended

Vanguard posted a CARES Act update that details how to roll back RMDs already taken, plus additional info. https://investornews.vanguard/what-the-cares-act-means-for-you/

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Frequent Contributor

Re: RMD requirement suspended

In Vanguard Steps link, Step 7, the last option "Exchange from another fund" is not permitted online - you have to call Vanguard to have that done.   https://investor.vanguard.com/contact-us/faqs/contribute-to-my-ira

Screenshot 2020-06-29 16.05.44.png

YBB
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Explorer ○

Re: RMD requirement suspended

.....

That comment was made in March.

But now we have clarity for 2020 -

1. RMDs are not required for 2020

2. RMDs taken between 1/1/20-8/31/20 can be reversed/rolled-over by 8/31/20 into accounts where they came from [if allowed by plans], or into T-IRA [this is because 60-day rollover and 1/yr rollover rules are waived for 2020].

There may not be any further changes for RMDs for 2020.


Yogi, i hadnt been following this thread. a bit more about the rule change. a link to an IRS and a Vanguard page are at the bottom.

 

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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peace, love, enlightenment and energy!
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Frequent Contributor

Re: RMD requirement suspended

@erperez , as noted in this thread itself and other threads, RMD reversal news came in late June. I have already done this.

YBB
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Explorer ○

Re: RMD requirement suspended


@yogibearbull wrote:

@erperez , as noted in this thread itself and other threads, RMD reversal news came in late June. I have already done this.


yogi, thx. i dont follow mstar discussions every week. but when i read that Money News Talk article, i just wanted to share it for others along w/ links to the IRS and VG pages.

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peace, love, enlightenment and energy!
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