Maeda Palius
August 8, 2020

Rollover Relief for Unwanted 2020 RMDs before 08/31/2020

To our Valued Clients and Friends,

All taxpayers who have taken a required minimum distribution (RMD) in 2020 (including those taken in January and February), from an eligible retirement account, now have the opportunity to roll those funds back into a retirement account by August 31, 2020. (IRS Notice 2020-51)

The CARES Act provides that taxpayers with an RMD requirement due in 2020 from a defined contribution plan, including a §401(k) or §403(b) plan, or an IRA, may skip those RMDs in 2020. The 2020 RMD suspension includes anyone who turned age 70½ in 2019 and would have had to take their first RMD by April 1, 2020. The 2020 RMD suspension does not apply to defined benefit plans.

Notice 2020-51 also clarifies that the one rollover per 12-month period limitation does not apply to 2020 RMDs that are recontributed to retirement accounts by August 31, 2020.

Therefore, if you have taken an RMD in 2020 and did not need (or want) the distribution, contact your investment advisor to determine the best method for rolling those funds back into your eligible retirement account.

The full text of the notice can be found at:

Wishing You Continued Health & Safety,

Maeda Palius, Jason Janzen, Annika Jensen and the POJ Team

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