Question: Daniel, age 80, took his 2020 required minimum distribution (RMD) from his IRA in February 2020. Since RMDs were waived for 2020 under the CARES Act, he would like to know if he can put the money back into his IRA even though it has been more than 60 days since he received the RMD. What do you tell him?
Answer: Yes. He has until Aug. 31, 2020, to put the RMD back into his IRA. Under Notice 2020-51, an IRA owner who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by Aug. 31, 2020. The notice also provides that this repayment is not subject to the one rollover per 12-month period limitation.
About NATP ResearchNATP Federal Tax Researchers
Our on-site team of tax professionals answers more than 20,000 questions each year on a variety of federal tax issues affecting your clients. Several of our tax researchers are CPAs and enrolled agents with broad tax knowledge and access to the most diverse research library in the industry.
For research help, contact us at 800-558-3402, ext. 2 or submit your question on our online form.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.