IRS Issues Notice 2020-51- Provides additional relief and guidance on waiver of 2020 Required Minimum Distributions
The CARES Act among many other things, granted a waiver from taking Required Minimum Distributions (RMDs) from retirement accounts for 2020. In addition, it granted a 60-day rollover period for those that had previously taken their 2020 RMD to redeposit the distribution and thus avoid taxation on the withdrawal.
IRS Notice 2020-51 allows those that have taken an RMD for 2020 to roll those funds back into the retirement account no later than August 31, 2020. Essentially, this extends the RMD rollover period for everyone that has taken a 2020 RMD from 60 days to August 31, 2020.
This is welcome relief for those that had taken their 2020 RMD early in January and were unable to roll over the 2020 RMD within the 60 days previously allowed under the CARES Act.
If you wish to take advantage of the extended rollover period, we suggest that you contact your retirement account administrator. In addition, if your 2020 estimated tax payments have been prepared including a 2020 RMD in your projected taxable income for 2020, you may want to refigure your 2020 estimates if you decide to take advantage of this extended rollover period.
If you have any questions, please contact your Maillie representative via telephone or email.