Relief for RMD Rollover
As discussed in our post on March 31, 2020, the requirement to take minimum distributions from retirement accounts has been suspended for the 2020 tax year.
This provision was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020. Some taxpayers already had received their required minimum distributions (RMDs) for 2020, or they received them before knowing about the suspension of the requirement for the 2020 tax year.
Since the CARES Act removes the requirement for minimum distributions, taxpayers who received such amounts can return them to a retirement account by rolling such amounts over to a retirement plan. However, such rollovers are generally subject to the normal 60-day time limit, which requires rollovers to occur within 60 days of the date of distribution.
In Notice 2020-51, the IRS provides relief for taxpayers for whom the 60-day time limit has already passed. Such taxpayers now have until August 31, 2020 to make rollovers of amounts that would have been the required minimum distributions in 2020, had the requirement not been suspended by the CARES Act.