The new bill Trump signed yesterday eliminated the RMD from IRA's. Does this apply to current 2019 filings or next year, 2020?

Forum|Forum|6 years ago
March 28, 2020
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Best answer by dmertz

Also, if the RMD can be cancelled for 2019 what happens to the federal tax that was withheld by the custodian when the RMD was taken?

Taxes withheld from a distribution taken in 2020 will be credited on your 2020 tax return. 2020 TurboTax will do this when next year you enter the 2020 Form 1099-R that shows the withholding in box 4. To be able to roll over the entire gross amount of the distribution, you'll need to substitute funds from another source to be able to complete the rollover by the 60th day following the date of the distribution.

DoninGA

Level 15

Effective for calendar year 2020 only.

dmertz

Level 15

However, although it doesn't affect your 2019 filing, if 2019 was your first RMD year making your required beginning date for RMDs April 1, 2020, you do not have to complete your 2019 RMD, so the new law can have some effect on your 2019 RMD. Also, anyone with an RBD of April 1, 2020 who recently received a portion of their 2019 RMD in 2020 which would have been eligible for rollover had it not been an RMD can now roll that distribution over within 60-days of receipt since that distribution is no longer treated as an RMD.