CARES ACT $ RMD
I have been retired for many years not and have been using the RMD (Vanguard) for several years. As I understand it, due to the CARES Act…… the RMD has been eliminated for 2020. …. However, I have already maxed out my RMD 2020. Am I entitled to get my 2020 tax contribution returned ?
I don’t know of any reason not to take advantage of this CARES Act if that is true….
Perhaps you could clarify this for me.. and if it is advisable for me to take advantage of this … explain just how to go about contacting the IRS to get it done.
Terry Says
The reason people return the RMDs is that they don’t really need the money, and would rather leave it back in their IRA to keep growing tax-deferred as long as possible. OR they decide to roll it into a ROTH IRA –using money from outside the account to pay the taxes. Then it will grow tax free.
If you took money out earlier this year, and taxes were withheld, you don’t get them back. But you can apply them to any taxes you will owe on other income this year — or against the taxes that would be required for the Roth conversion.
