dmertz
Level 15

Retirement tax questions

It would have been more correct for the IRS to have said, "Since the RMD rule is suspended, [distributions taken in 2020 that would have been RMDs were it not for section 2203 of the CARES Act] are considered eligible for rollover. Therefore, [these distributions] can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan."  I guess that that's a bit too wordy for them, though, so they simplified it by using "RMDs" to refer to  distributions that are not actually RMDs.  It a bit of an oxymoron to refer to a distribution as a non-required required minimum distribution.

 

Also be aware that the section 408A(d)(3)(C) of the tax code defines a Roth conversion as a type of distribution and rollover, so this statement by the IRS regarding rollovers applies in the same manner to Roth conversions as it does to ordinary rollovers.