Retirement Accounts - Important Deadline That May Help Minimize 2020 Income Taxes is August 31

For those subject to the required minimum distribution (RMD) requirements for retirement accounts, an important deadline is looming on August 31, 2020.  An RMD is the minimum amount that must be withdrawn from non-Roth retirement accounts each year.  The requirement generally applies to anyone who turned 70 ½ prior to December 31, 2019 and anyone who turns 72 thereafter or those who have inherited IRAs.  The CARES Act stimulus package that was enacted in response to the current COVID 19 pandemic suspended the requirement to take the RMD in 2020.  

For those who may have already taken all or part of their 2020 RMD, you are not out in the cold.  The IRS is allowing you to roll back (return) your prior distributions by August 31, 2020.  To qualify for this relief, the funds must be rolled back into the same distributing IRA.  If you have taken a required distribution from your retirement account in 2020, I would encourage you to speak with your financial and tax advisor right away to determine if you can benefit from this relief.

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This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.