IRS announces new RMD rules for 2020

From the desk of Robert Steinberg, JD, CPA, CFP®

Did you take a Required Minimum Distribution before the CARES Act suspended RMDs for 2020? The IRS and the Treasury Department released new guidelines on June 23rd extending the 60-day rollover period until August 31, 2020. That means that virtually any distribution that was meant to be an RMD in 2020 can be undone and rolled back before September. Usually, a limitation is placed on the number of rollovers allowed, one-per-twelve-months, but this new guideline (IRS Notice 2020-51) nullifies that rule. Beneficiary IRA owners can also take advantage of the new rollover deadline. If you took an RMD in 2020, you should speak with your CPA or financial advisor about how to take advantage of this new rule to reduce your tax burden.