New Guidance from the IRS on 2020 RMD’s
Many are already aware that The CARES Act waives required minimum distributions (RMD’s) for 2020 but many had already received distributions before the Act went into effect. IRS Notice 2020-51 now permits rollovers of RMDs already distributed and certain related payments, including an extension of the 60-day rollover period for certain distributions to August 31, 2020. Note that this notice doesn’t remove the rule for 1 rollover every twelve months. In general, this means that if a rollover has been completed since Sept 1, 2019 you would not be eligible for another. If you’d like to take advantage of this new provision, we always recommend you first talk to your tax or financial professional to verify eligibility and make sure it fits into your retirement plans.