RMDs | Ed Slott and Company, LLC

RMDs

REPAYMENT OF UNWANTED RMDS AND ROTH CONVERSIONS FROM COMPANY PLANS: TODAY’S SLOTT REPORT MAILBAG

Question: For COVID "special" Aug 31 rollovers, am I allowed to return my 401(k) required minimum distribution (RMD) to my IRA? Thank you, Maria Answer: Hi Maria, Yes, the CARES Act and subsequent IRS guidance allows unwanted

The CARES Act and RMDs: Today's Slott Report Mailbag

Question: If someone took two IRA distributions earlier in 2020 that were considered RMDs, and now wishes to repay the cumulative amount back into the same IRA, are there any rules about the number of rollover deposits they can make in order to do so? Must it be done in 1 transaction, or 2, or could it be spread out across even more? Thank you, Adam Answer: Adam, With IRS Notice 2020-51, released on June 21, the one-rollover-per-year rule and the 60-day rollover rule can both be bypassed for RMD payments that are returned by August 31, 2020.

IRS Extends Rollover Deadline for 2020 RMDs

The IRS has extended the rollover deadline for required minimum distributions (RMDs) taken from IRAs or company plans in 2020. In Notice 2020-51, released on June 23, the IRS said that any unwanted 2020 RMDs can be repaid via rollover to an IRA or company plan by August 31, 2020. Normally, RMDs cannot be rolled over. However, the CARES Act waived 2020 RMDs (and first-time 2019 RMDs delayed until 2020) from IRAs and defined contribution plans. For this reason, amounts received in 2020 that would have been RMDs are eligible for rollover since they are technically not RMDs.

2020 RMD WAIVERS: TODAY’S SLOTT REPORT MAILBAG

Question: I understand that I don’t have to take any RMDs during 2020. However, is the CARES Act rule that it is an-all-or-nothing for RMDs or can I take a portion of my RMD for 2020 but not all John Answer: Hi John, Since RMDs are waived this year, you have complete flexibility. In 2020 you can take none of what would have been your RMD, some of it, all of it, or even an amount greater than what would have been your RMD amount.

QCDs and RMDs: Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about QCDs and RMDs.

Conversions, Missed RMDs, Inherited IRAs: Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about conversions, missed RMDs, and inherited IRAs.

This Week's Q&A Mailbag: Excess IRA Contributions and RMDs for Inherited IRAs

This week's Q&A Mailbag answers reader questions on excess IRA contributions and RMDs for inherited IRAs.

This Week's Q&A Mailbag: SEP contributions, RMDs, and Inherited IRAs

This week's Q&A Mailbag answers reader questions on SEP contributions, RMDs, and Inherited IRAs.

Still-Working Exception and Indirect Transfers: Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about the still-working exception and indirect transfers.

Converting After-Tax Contributions and Aggregating RMDs: Today’s Q&A Mailbag

This week's Slott Report Mailbag answers readers' questions about avoiding converting after-tax contributions to a Roth IRA and aggregating RMDs.

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