RMD Requirement

Submitted by Patrick Valenty on Mon, 2020-04-20 01:37

I am currently 78. Every year have been making a RMD from my Traditional IRA. Also I have been making Roth contribution since age 70 based on qualified income. I made my RMD for 2020 in Jan 2020.

Doing my taxes for 2019. I am over the $ limits for making a Roth contribution for 2019. I intend to make a Traditional IRA contribution by July 15th. Will I be required to make a RMD for 2020 next year?

Can someone advise me if I am doing the correct thing? Thank you



Submitted by Alan - IRA critic on Mon, 2020-04-20 01:58

  • It is best to assume that you will have to take a 2021 RMD next year, however the 2020 RMD has been completely waived. 
  • It is unfortunate that you took a distribution in January that appeared to be your RMD at the time, but is now just a distribution. If this distribution had been done after January, you would have up to 7/15 to roll it back and erase the tax bill. Since this relief is not equitable to those who took January distributions, perhaps Congress or the IRS will eventually include January  distributions available for rollover relief. 
  • Another option for rollover relief is if you qualify for a corona virus related distribution anytime this year, since those distributions back to 1/1 can be rolled over regardless of the 60 day time limit and the one rollover rule. Therefore, continue to monitor that situation, particularly since you are still working.
  • As for your 2019 excess Roth contribution, you cannot recharacterize it to a TIRA due to age under the rules that applied to 2019. Therefore, you should request a return of the contribution, and the custodian will calculate the gain or loss on it. SInce there is a good chance of loss, there would not be any earnings returned that would be taxable on your 2019 return.


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