Time running out to reverse 2020 RMD and save on taxes

Required Minimum Distribution

The Coronavirus pandemic resulted in a change in the Required Minimum Distribution (RMD) for 2020. The CARES Act, the coronavirus relief act that took effect this spring, permitted retirement account holders to bypass required minimum distributions for 2020, including beneficiaries with inherited accounts.

If an individual has already taken an RMD in 2020, including someone who turned 70 ½ in 2019, the individual will have the option of returning the distribution to their account or to another qualified plan. An IRA owner or beneficiary who has already received an RMD in 2020 can also repay the distribution to the distributing IRA no later than August 31, 2020 to avoid paying taxes on that distribution.
Here are two articles with additional information:

1. IRS announces rollover relief for RMD that were waived under the CARES Act CLICK HERE

2. You’re running out of time to reverse this retirement withdrawal and save on taxes. CLICK HERE

For more information, contact your financial advisor, or your Cover & Rossiter CPA at 302-656-6632.