RMDs for 2020
I am one of those people who takes my annual RMD on the first business day of the year for me and my wife. We took them on January 2, 2020. Subsequently Congress passed a law that we don’t have to take RMDs for 2020. But it seems that people like myself are unfairly punished because it is more than 60 days to put the money back into our IRAs. Is there any possibility that Congress will fix this flaw in the program in which people who took early withdrawals of their RMD in 2020 are not allowed to put the money back in once the 60 day rule has passed?
Joe Hauser
Terry Says
The have already FIXED this problem BUT only for SOME people!
On April 9, the IRS issued Notice 2020-23, indirectly providing limited relief by allowing an extension of the 60-day rollover period. Any distribution (including unwanted RMDs) taken between Feb. 1, 2020, and May 15, 2020, can still be rolled over if done by July 15, 2020.
But if youtook your RMD in January, you are out of luck. It cannot be returned, unless the IRS provides additional relief. Fingers crossed, the IRS may revisit this and make it fairer by making it retroactive to Jan 1, 2020. I will surely write about it if that happens.
