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Unwanted 2020 RMD can be returned before August 31, 2020

Unwanted 2020 RMD can be returned before August 31, 2020

June 24, 2020
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June 23, 2020, IRS released Notice 2020-51 which allows unwanted 2020 Required Minimum Distributions (RMDs) to be returned before August 31, 2020.

Previously, only RMD’s taken between February 1st and May 15th could be returned by 7/15/2020.  If you were taking distributions monthly, you could only return one of those distributions because of the once-per-year rule for rollovers.  If you took an RMD from a beneficiary IRA, you could not return it because rollovers were NEVER allowed for beneficiary IRAs.

Great News!  IRS Notice 2020-51 allows ALL unwanted 2020 RMDs to be returned before August 31, 2020.  That includes those RMDs taken in January, monthly RMD distributions, and RMDs taken from a beneficiary IRA.  

Keep in mind - this applies only to RMDs.  And distributions that were not RMDs must still abide by the one-rollover-per year rule and the standard 60-day rollover rule.

You can read IRS Notice 2020-51 at https://www.irs.gov/pub/irs-drop/n-20-51.pdf?inf_contact_key=941d4dc619941da023c4b73e9fea1364

Due to concerns about COVID-19, Danielle and I continue to work remotely.  If you would like to discuss how IRS Notice 2020-51 impacts you personally, please email me at luana@lmcorral.com to schedule a time to talk or reach out to Danielle Martinez at danielle@afc-ais.com or via phone at 954-302-6324.  If you get voicemail, we promise to get back to your promptly.

Stay safe and be well.