Listen to Lawrence…News Flash on 2020 RMDs
Dear clients and friends,
NEWS FLASH ON 2020 REQUIRED MINIMUM DISTRIBUTIONS (RMDs)
I am interrupting my lessons on FDIC and NCUA deposit insurance to bring you an important announcement regarding your 2020 RMDs.
You may recall from a prior LISTEN TO LAWRENCE email that the 2020 CARES ACT suspended all RMDs this year. If you have not taken your RMD yet this year, and you have no need for the money, you should proactively let your financial planner know that you do not want any distribution from your retirement plans this year.
BUT, what can you do if you already took your RMD this year? Can you simply return it to your IRA or retirement plan as if it never happened? I reported to you in the past that if you received your RMD or any portion of it within the last 60 days it could be returned before the 60 days expired, but not after. That was then.
This is now! The IRS has now issued guidance that ALL RMDs CAN BE RETURNED, TAX FREE, PROVIDED THEY ARE RETURNED TO THE IRA OR PLAN NO LATER THAN AUGUST 31ST, 2020. The normal 60 day rule is suspended for this year.
I hope this helps.
Please forward this information to your friends and relatives.
As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.
Let’s stay connected.
LISTEN TO LAWRENCE