There had been some discussion here about people who took their RMD
early in the year, wanted to roll it back when the CARES Act
eliminated required RMDs for this year, but had missed the 60-day
deadline. It seems the IRS has extended the deadline to 31 August.
Quoting from an article on Vanguard's website:
"Here's what changed:
" * The flexibility to roll over your RMD. Previously, there was a
limited time frame to roll over RMDs that were waived under the
Coronavirus Aid, Relief, and Economic Security (CARES) Act. That
meant some investors were left out. Those who took their 2020 RMDs
before February 1 were unable to roll back those distributions. In
addition, IRA beneficiaries weren't included in the rollback options.
" On June 23, the IRS announced that all investors who already
took RMDs in 2020 are now able to roll back distributions. The new
deadline for rolling back such RMDs is August 31, 2020. That replaces
the previous requirement of rolling them back within 60 days of the
distribution, or by July 15 for certain distributions.
" * Flexible distributions from retirement plans. Under the CARES
Act, investors affected by the coronavirus crisis may be able to take
penalty-free distributions in 2020 from an IRA or employer-sponsored
plan. That's been expanded to include more scenarios."
More details, and a recap of previous changes affecting tax treatment
of retirement accounts under the CARES Act, in the article:
The article doesn't give specific citations to IRS sources, so if you
decide to take advantage of any of these changes you'll want to
verify for yourself that the information is correct.
- posted 1 month ago