2019 RMD in 2020, cares act?
Our client took his first RMD from 2019 in early 2020 before the cares act. We plan on skipping 2020 but can he roll back the 2019 RMD now?
Our client took his first RMD from 2019 in early 2020 before the cares act. We plan on skipping 2020 but can he roll back the 2019 RMD now?
Permalink Submitted by William Tuttle on Thu, 2020-04-16 23:22
Permalink Submitted by Jimmy Ho on Fri, 2020-04-17 03:11
Where would someone obtain information if the IRS issues further guidance on RMD(s) taken between 1/1 and 1/31?
Permalink Submitted by Alan - IRA critic on Fri, 2020-04-17 03:48
The IRS would issue a Notice and any such notice would be widely published by the financial press. Or Congress may take this up in future relief legislation. This might also take the form of much broadened eligibility for corona virus distributions as that would also solve the rollover problem for January distributions.
Permalink Submitted by Jimmy Ho on Fri, 2020-04-17 16:57
Thank you for your response.
Permalink Submitted by Alan - IRA critic on Thu, 2020-04-16 23:40
Agree. The CARES Act also waives 2019 RMDs if client reached 70.5 in 2019, but deferred their 2019 RMD (or a portion of it) to 2020. As spiritrider indicated, if client took any of their 2019 RMD on Feb 1 or later, they can roll it back up to 7/15. But they must have a rollover available under the one rollover limit. And if they took the 2019 RMD in January, the same applies but will need further relief guidance from the IRS or Congress to do the rollover. However, if they end up quallfying for a corona virus related distribution which covers distributions back to 1/1, then they can roll any number of distributions back and have 3 years to do it without regard to the one rollover limit..
Permalink Submitted by Mark Hilgenberg on Fri, 2020-04-17 16:40
Thank you all, that is great to know!