New IRS Guidance on 2020 IRA DistributionsSubmitted by Alloy Silverstein Financial Services, Inc. on June 26th, 2020
IRA Distributions Done for Tax Year 2020 May Be Deposited Back By August 31, 2020.
We are happy to report that the IRS has announced rollover relief for required minimum distributions from retirement accounts that were taken for tax year 2020. This clarifies and updates the prior guidance that had been offered under the CARES Act.
This applies to RMD withdrawals that have already occurred in 2020. As you may know, the requirement to take RMDs was waived for 2020; but the initial guidance was unclear regarding withdrawals taken in January and multiple withdrawals. We now have very positive clarification from the IRS.
This newest guidance basically allows any and all 2020 RMD withdrawals to be repaid to an eligible retirement account, as long as the repayment is completed before August 31, 2020. Those of you who have taken RMDs in January or have taken periodic withdrawals over several months may return those payments, if desired.
Please call us with any questions you have regarding this.
Ronald Donato Jr. CFP®, MBA may be reached at 856.667.6228 or RDonato@asfinancialservices.com.