Back in March, the CARES Act suspended all 2020 required minimum distributions (RMDs) from eligible retirement accounts. For taxpayers who turned 70½ during 2019, this includes the initial 2019 RMDs due by 4/1/2020, if the RMD was taken after 12/31/2019.
RMDs may be deposited back into a retirement account within 60 days. Previously, the IRS extended some 60 day rollover periods ending on or after 4/1/2020 through 7/15/2020. However, some taxpayers who took their RMDs early were left out.
Now, with Notice 2020-51, the IRS is giving everyone a second chance. The new deadline to rollover an RMD is 8/31/2020. The notice also includes a sample qualified plan amendment.
Please note that this applies to all defined contribution plans, including a 401(k), a 403(b), and IRAs. It even applies to inherited IRAs. However, it does not apply to any defined benefit plans.
