Reversal of RMD Reversal?
RMD reversal question for you. A client who took an RMD. Subsequently he wanted it reversed with the COVID situation. He now wants to reverse the reversal. Can we do that? We would just send out another RMD right? Or is that not allowed because of the reversal? What is the best course of action here?
Permalink Submitted by Alan - IRA critic on Fri, 2020-09-18 21:03
Yes, client can still take a distribution from the IRA of any amount he chooses. There are no RMDs for 2020, so he can take out whatever amount he wishes and will owe tax on that amount.