2020 RMD CARES Act Question | Ed Slott and Company, LLC

2020 RMD CARES Act Question

Hello,

Do we know if the waiving of RMD's on IRA BDA's and Roth BDA's for 2020 was included in the CARES Act? This might have been answered in a previous post so I apologize if I missed it.

Thanks.

Yes, all 2020 RMDs are waived including inherited IRA and inherited Roth RMDs. However, for a non spouse inherited IRA RMD, if the 2020 RMD has already been distributed, there is no way to roll it back.

If a 2020 RMD (inherited non/spousal) was taken mid March prior to CARES act, how it it considered?  An RMD, or distribution, does it make a difference (10% Taxes were withheld) And you are pretty clear that we cannot (ever) re-deposit it back into to acct.?  Thanks for clarifying, any and all.  

Under current law, a distribution paid to a non-spouse beneficiary can never be rolled over.  Since it's not permitted to be rolled over, for a distribution already paid there is no difference whether it is a 2020 RMD or not.  It's reported on your 2020 tax return the same either way.

 

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