Ask Terry Questions Not having to take your ANNUAL REQUIRED MINIMUM DISTRIBUTION for 2020

Not having to take your ANNUAL REQUIRED MINIMUM DISTRIBUTION for 2020

By Terry Savage on June 12, 2020 | Financial Planning / Retirement

In June I heard we don’t have to take the Annual Required Minimum Distribution for 2020. I took mine in January. Is there anything all of us who took it in the first 6 months of the year can do about it now? I love listening to you on WGN radio.

Terry Says

Thanks. Here’s a link to a column I wrote a few weeks ago on that subject. The bottom line is that anyone who took a RMD AFTER February 1, 2020 can “return” it withinn 6 months with no penalty. (Any withheld taxes must stay with the government, but you can claim them as a credit next year or reduce quarterly estimates by that amount).

BUT — as it stands now — if you took a distribution in January, you CANNOT return it and let it grow. That’s just a quirk of the law. So spend it or save it. But it’s yours and you owe taxes on it this year.

Recent Financial Planning / Retirement Questions

money

ASK TERRY

a personal
finance question