In late March, the CARES Act was rolled out to help American taxpayers deal with the financial effects of the Coronavirus.
One of the provisions in the Act, removed the requirement to take the Required Minimum Distribution from your retirement accounts during 2020, including those who inherited retirement plans or who would have been required to start taking distributions based on age.
This provision applies to most qualified retirement plans, except defined benefit plans.
Already taken your RMD for 2020?
You can repay the distribution before August 31, 2020. When it is repaid, it will be considered a rollover to another qualified plan. In doing this, you will not have to include it in your income and will avoid paying taxes on that distribution this year.
For more information, we suggest you reach out to your tax professional to discuss your situation so that you receive the best benefit for you.
Kathie Meller, CPA
kmeller@ljcpa.com