by Kathy Sablone, JD, AEP®, Director of Wealth Planning
by On June 23, the IRS issued additional guidance regarding 2020 Required Minimum Distributions (“RMDs”). As noted in an earlier alert, the CARES Act waived all RMDs for 2020. For taxpayers who had already taken their RMDs, certain requirements had to be met in order to return that amount without it counting as a taxable distribution. The IRS has now modified those requirements as follows:
- The ability to rollover an RMD has been extended to taxpayers who took an RMD at any time in 2020 (prior guidance had restricted this opportunity to RMDs taken between February 1 and May 15).
- The 60-day rollover period has been extended and repayment may be made until August 31, 2020, regardless of the date of distribution.
- The prohibition on more than one rollover in a 12-month period will not apply.
- Rollovers are not allowed for non-spouse inherited IRAs.
If you have any questions, please contact a member of our Estate and Financial Planning Group:
Kathy Sablone – [email protected] or 617-956-9712
Alisa Kim O’Neil – [email protected] or 617-275-0313
Important: This article does not contain any legal or tax advice. You should always consult with your attorney, accountant or other professional advisors before changing or implementing any tax, investment or estate planning strategy.
IRS Circular 230 Disclosure: Pursuant to IRS Regulations, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.