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 National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
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.