It looks like my 401k plan isn't getting something right about the 2020 RMD suspension. This is a large plan for a major US company, with a big corporate recordkeeper, telling me the following:
- They will not force out an untaken RMD in December 2020 as is done in normal years. There are no notices about that, either on paper or on the website, but that is what they say on the phone.
- They will distribute the amount calculated for the 2020 RMD if requested, but they have advised that it is not eligible for rollover.
- They will not perform a direct rollover, payable to the receiving IRA, until the 2020 RMD amount is distributed first, payable to me.
I know that I can perform an indirect rollover but prefer to do it as a direct rollover, and without first taking the "RMD".
Are they correctly following the CARES Act?