When the CARES (Coronavirus Aid, Relief and Economic Security) Act was signed into law on March 27 of this year, it included a provision that suspended RMDs for 2020. The Act made the suspension effective for the full year.
Since some people had already taken their RMDs before the Act was passed, would they be left out of the benefits of suspending? If they had taken their RMDs already, could they put the money back?
To do that, they would have had to follow “rollover” rules. But there was a problem. The rules had two limits: The rollover had to be completed within a 60-day period from the date of withdrawal and only one rollover was allowed per 12 months.
The good news is that the IRS issued Notice 2020-51 last week to solve the problem. Now, anyone who took RMDs at any time this year has until Aug. 31 to redeposit them without any limitations. To read the new rules, click here.
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