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neals273
New Member

How do I get my 2020 RMD back? The Fed. Gov. said I may waive my 2020 required RMD due to the CORONAVIRUS. HELP....

 
4 Replies
macuser_22
Level 15

How do I get my 2020 RMD back? The Fed. Gov. said I may waive my 2020 required RMD due to the CORONAVIRUS. HELP....

It depends.

 

You can roll it back within 60 days of the distribution since the RMD was not required, but just like any other non-RMD distribution the 60 day rollover rule applies, UNLESS,

 

It is a coronavirus-related distribution to qualify to be returned.  In other words, if you took the distribution only because  the money was needed because of coronavirus can it be rolled back beyond the 60 day limit.

 

The CARES act §2202 says:

 

(3) AMOUNT DISTRIBUTED MAY BE REPAID.—

(A) IN GENERAL.—Any individual who receives a coronavirus-related distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the Internal Revenue Code of 1986, as the case may be.

 

(C) TREATMENT OF REPAYMENTS OF DISTRIBUTIONS FROM IRAS.—For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a coronavirus-related distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the coronavirus-related distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
DavidS127
Expert Alumni

How do I get my 2020 RMD back? The Fed. Gov. said I may waive my 2020 required RMD due to the CORONAVIRUS. HELP....

Although not authoritative, the article at this link discusses the options available for a person who took their 2020 RMD before....

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macuser_22
Level 15

How do I get my 2020 RMD back? The Fed. Gov. said I may waive my 2020 required RMD due to the CORONAVIRUS. HELP....


@DavidS127 wrote:

Although not authoritative, the article at this link discusses the options available for a person who took their 2020 RMD before....


That basically says the same thing (that it can only go beyond 60 days if a coronavirus-related hardship.)

 

For distributions taken more than 60 days ago in 2020, a new strategy exists. Under the CARES Act, those distributions could potentially be repaid into the IRA over the next three years if you can show that the money was withdrawn to cover a coronavirus-related hardship.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fanfare
Level 15

How do I get my 2020 RMD back? The Fed. Gov. said I may waive my 2020 required RMD due to the CORONAVIRUS. HELP....

Intuit must be lovin' it. More and more ridiculous complexity.

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