RMD for 2020 60 day waived | Ed Slott and Company, LLC

RMD for 2020 60 day waived

Client wants to take out 100k from her (over 60 age) IRA to help her son buy a home. Then he is paying her back but needed for closing.

Normally she would have the 60 day rollover rule on the 100k. However, with COVID, is this still the same or was the 60 days waived for 2020 and she could do the rollover anytime until the end of 2020 year?

Thank you.

She will have to roll the funds back within 60 days, assuming she has not already used up her one permitted rollover for 12 months. However, if she qualified for a CRD, she would have 3 years to roll the distribution back if needed since she could then report it as a CRD.  Note that due to the one rollover limit, she should take the 100k distribution as a single distribution instead of doing more than one distribution, since she is only able to roll one distribution back. She should also delay the distribution until the last couple of days to preserve as much of the 60 day deadline as possible. 

 

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