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.
Dave focuses on tax compliance and planning in the areas of income and estate tax. He is the tax partner for our automotive group but he’s also tapped for his expertise in real estate, manufacturing and professional services. He’s a whiz at estate and gift taxation and can create a customized approach to designing and implementing a successful exit plan for business owners.
You can reach Dave at 714-672-0022.
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