Good News From The IRS – No, Really!

If you withdrew funds from your IRA this year as part of a required minimum distribution (RMD), you are probably eligible to roll the funds back into your IRA. On March 27th, the US Congress passed the CARES Act which waived required minimum distributions for IRAs in 2020. For retirees who do not need the income, suspending an RMD is a nice benefit. It means less taxable income and therefore lower taxes. But what about people who already took their RMD before Congress passed this legislation? According to a new IRS notice, if you took your RMD between February 1st and May 15th of this year, you have until July 15th to roll the funds back into your IRA. The only exception is you cannot have rolled over the funds within the past year – which is unlikely for retirees taking distributions. Let us know if you are curious to learn more or have questions about your specific situation.

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