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JMHELP
New Member

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

The inherited IRA RMD was processed 2 weeks before the AID ACT Waiver.

 

The RMD waiver applies to inherited IRAs.

Since the new law waives RMDs for 2020, then technically an RMD already taken is not an RMD anymore.

The undo rollover must occur within 60 days of receipt of the funds.

 

Can inherited IRA RMD be undone?   How?    Please advise.

>

> Thank you

7 Replies
Irene2805
Expert Alumni

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

It depends on the relationship of the deceased IRA owner and the beneficiary.

 

If you inherited the IRA from your spouse AND if it's within 60 days of the distribution, you can deposit the same amount of funds back into the same or a different retirement account, as a rollover.  Contact the administrator of the IRA to arrange the rollover.

 

If you inherited the IRA from someone other than your spouse, non-spouse inherited IRAs are never eligible for rollover contributions. As the IRS states in Retirement Topics – Beneficiary:

Inherited from someone other than spouse. If the inherited traditional IRA is from anyone other than a deceased spouse, the beneficiary cannot treat it as his or her own. This means that the beneficiary cannot make any contributions to the IRA or roll over any amounts into or out of the inherited IRA. However, the beneficiary can make a trustee-to-trustee transfer as long as the IRA into which amounts are being moved is set up and maintained in the name of the deceased IRA owner for the benefit of the beneficiary.

In this case, any 2020 distributions already taken from an inherited IRA are final.

 

 

 

 

JL59
New Member

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

The IRS issued new guidance in June 2020 on RMD's  in 2020.  Now, RMD's on  Inherited IRA's CAN BE returned to the IRA as a rollover by August 31, 2020.  I'd suggest you contact your IRA plan administrator and find out their procedures for sending the RMD back to your IRA. 

llzheng90
New Member

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

Could anyone show me what doc I can find the update about Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020 in June?   Because I withdraw RMD in 01/03 and 01/29/2020.  Can I put them back to my IRA now.  Thanks.

llzheng90
New Member

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

I found it.  The new guidance for CARES act is IRS Notice 020-51.  I still need confirmation from IRS tax service if I could put my 2020 RMD withdraw in 01/03/2020 and 01/29/2020 back to my IRA.

DoninGA
Level 15

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.


@llzheng90 wrote:

I found it.  The new guidance for CARES act is IRS Notice 020-51.  I still need confirmation from IRS tax service if I could put my 2020 RMD withdraw in 01/03/2020 and 01/29/2020 back to my IRA.


See this IRS news release dated June 23, 2020 - https://www.irs.gov/newsroom/irs-announces-rollover-relief-for-required-minimum-distributions-from-r...

 

IRS Notice 2020-51 -  https://www.irs.gov/pub/irs-drop/n-20-51.pdf

tsjhee
New Member

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

I am 76 years old and took out 2020 RMD $63045.60 (2 securities plus cash) on 1/6/2020.   I have re-contributed (Rollover) $63045.60 (2 different securities+cash) on 7/2/2020 from Schwab individual account to the IRA account.  I have not realized the rollover has to be the in-kind (same way I took out) of RMD, but I re-contributed $63045.60 with 2 different securities+cash.   Now, the Schwab IRA division was advising me I re-contributed or rollovers incorrectly, and am confused about what is my next course of action?

Can I remove excess IRA Contribution back to an individual account, and re-contribute or rollovers $63045.60 with the original in-kind or the same 2 securities+cash?  

Cell. [phone number removed]

Email. [email address removed]

SusanY1
Employee Tax Expert

Under Coronavirus Aid, Relief, and Economic Security Act RMDs are waived for 2020.

You should be able to remove the securities and cash as a correction or excess contribution, and then put the same securities and cash amount back in to return the RMD per the CARES act rules that are making the return of the RMD possible. 

 

This assumes Schwab will work with you, but I cannot think of any reason they wouldn't to do this for you.  Be sure that you work with them to address the withdrawal as excess contribution or a correction and do not make a "normal" withdrawal of the funds. 

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