Return 2020 RMD Withdrawal

[nwsteve]

I just learned today that IRS announced April 9, that it was going to allow return of RMDs taken before the passage of the CARE act that cancelled the need for 2020 RMDs. Well sorta. 2020 RMDs taken from Feb 1 forward can be returned by July 15. No relief (at least as yet) for January RMD withdrawals. However article said further action by IRS is still possible.
https://www.wsj.com/articles/answers-to-important-rmd-questions-11586511002
The above source may be behind a paywall.
Also, there is still the 60 day window that will allow you return any RMD withdrawals without penalty.
I did a significant in-kind transfer in early Feb so this will allow me to move the shares back. Interesting wrinkle for in-kind, if you took shares you have to replace shares. Does not matter what current price is so if you already sold out your RMD shares transferred, you probably can replace for a net gain. YMMV

 

[The Cosmic Avenger]

Interesting, thanks nwsteve. I took a small RMD (about 1/7 of the total required) from an inherited account in January. Although I wasn't planning on trying to put it back, I suppose if they revise the guidance on that AND we have another huge dive AND I have the free cash, it might be worth finding the money from somewhere to put it back.

 

[braumeister]

I just learned today that IRS announced April 9, that it was going to allow return of RMDs taken before the passage of the CARE act that cancelled the need for 2020 RMDs.

I did an RMD in late February, and Fidelity moved it back for me in mid-April. They were already on top of it, so when I called they knew exactly how to do it. I had to do it over a phone call with their "retirement specialists" but it was only about five minutes on the phone. Very easy.