A new tax law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was signed into law on March 27, 2020, waives required minimum distributions (RMDs) for 2020.
But as with most things related to the CARES Act, there are plenty of traps and pitfalls, says Denise Appleby, CEO of Appleby Retirement Consulting.
In this episode of Ask Bob, a reader writes:
I took my 2020 required minimum distribution on January 2, 2020. Is there any way I can put part of it back into my IRA even though it is obviously over the 60-day limit? Is there any extension for this very unusual year?
According to Appleby, the rollover must be completed within 60-days of you receiving the distribution amount. The IRS may, however, waive the 60-day rollover requirement in certain situations if you missed the deadline because of circumstances beyond your control.
But Appleby doesn’t think you will qualify for the waiver.
Rather than rule the wavier out completely, however, Appleby recommends that our reader ask his tax adviser whether he might qualify for the waiver of the 60-day rollover requirement. Read Retirement Plans FAQs relating to Waivers of the 60-Day Rollover Requirement.
Appleby is also hopeful that lawmakers will provide a blanket extension for the 60-day rollover requirement because of the coronavirus pandemic. To that end, Appleby recommends that our reader writes to his congressman and senators.
Got questions about money? Get answers. Email Robert.Powell@maven.io.
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