Re: RMD question

Why is turbo tax not mentioning the CARES act. If you were to receive a RMD starting in 2019, ist that requirement waived? Also, if you received the funds after Dec. 31 (when you have until April 2020 to get your first distribution, is that amount reportable on the 2020 taxes instead of 2019?

Thanks

posted

While the withdrawal of the RMD is waived for 2020, the decision to withdraw from a retirement plan is up to the individual tax payer. Any withdrawal in 2020 will be taxed on the 2020 tax return.

If you have taken a distribution from an IRA or 401(k) since February, a new IRS notice extends the 60-day timeline you have to roll it over to another retirement account. IRS Notice 2020-23 allows a deadline extension to July 15, 2020 for time-sensitive actions that were due on or after April 1, 2020 but before July 15, 2020.