The IRS is providing welcome relief on required minimum distributions for 2020.
The stimulus law enacted on March 27 waived RMDs from IRAs and workplace retirement plans for 2020.
IRA and plan distributions already taken out in 2020.People have until Aug. 31 to return the Jan. through June payouts to their IRA or plan, such as a 401(k), and treat the recontributed funds as a tax-free rollover.
IRS says in new guidance. It also waives the one-rollover-every-12-months trap for IRA owners who took RMD as monthly installments in 2020. Also, rollovers of RMD’s from inherited IRAs are permitted for this purpose.
Further details can be found in IRS Notice 2020-51.