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Old 03-26-2020, 04:20 PM   #21
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Does that apply to inherited IRA's? Because I'm going to do this if it does.
It would seem to apply. I don't know of any IRS rule that it wouldn't apply. However, your IRA custodian may not be set up to accept a rollover into an inherited IRA, as that is something that normally would not happen.

It is worth noting that rollovers of the kind described here are limited to one per 12 month period, so if you choose to do this you would need to make a single re-deposit and that rollover could constrain your ability to do the same thing over the next twelve months. You'd also be prevented from doing this if you already had done a rollover of this type in the last 12 months. See https://www.irs.gov/retirement-plans...-per-year-rule.

Note that this would also cause problems for someone who was taking RMDs from multiple inherited IRAs, although those people are probably pretty rare.
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Old 03-26-2020, 04:41 PM   #22
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If Fidelity balks, perhaps the Schwab folks will be more accommodating. By the time the bill is signed and becomes law, it will be too late for the first two monthly distributions. But March and April can go back. and I can cancel the remaining distributions.

Of course, if all my tenants go on a rent strike, this could be a moot point. So far, so good.
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Old 03-26-2020, 05:35 PM   #23
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I already completed my RMD, it’s was 30K. Can I return the 30K to my TIRA and then take out 30K as a Roth Conversion?
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Old 03-26-2020, 05:37 PM   #24
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Hm. I've got maybe 2 or 3 days to put back the smaller RMD, and I had Fidelity withhold tax on it, I'm not sure how that would work...I might just leave it, and be glad I can (probably) forego the larger RMD this year. It would be nice to roll that one back and reinvest it now, though.
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Old 03-26-2020, 06:01 PM   #25
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Hm. I've got maybe 2 or 3 days to put back the smaller RMD, and I had Fidelity withhold tax on it, I'm not sure how that would work...I might just leave it, and be glad I can (probably) forego the larger RMD this year. It would be nice to roll that one back and reinvest it now, though.
I'd call Fidelity and tell them what you want to do. Their customer service should be able to do it for you.
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Old 03-27-2020, 01:40 AM   #26
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Crap I already did rmd to fund my roth. I guess there is no undoing that. Could have been worth it to wait til 2021 and get a higher subsidy.
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Old 03-27-2020, 09:30 AM   #27
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Crap I already did rmd to fund my roth. I guess there is no undoing that. Could have been worth it to wait til 2021 and get a higher subsidy.
I don't know, but I think maybe you can undo it. It's possibly worth checking into.
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Old 03-27-2020, 10:59 AM   #28
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I don't know, but I think maybe you can undo it. It's possibly worth checking into.

Because Iím a freaking financial genius I already invested it in the Roth. Letís just say market timing is not my forte. Itís maybe 6k so not a huge amount but still...
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Old 03-27-2020, 11:59 AM   #29
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Crap I already did rmd to fund my roth. I guess there is no undoing that. Could have been worth it to wait til 2021 and get a higher subsidy.
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Because Iím a freaking financial genius I already invested it in the Roth. Letís just say market timing is not my forte. Itís maybe 6k so not a huge amount but still...
Can you elaborate on this a little bit? You can't use an RMD to fund a Roth IRA. If you took the money from your IRA and put it in your Roth IRA, then it's a Roth Conversion. You can recharacterize it during this calendar year and put it back in your tIRA if you want to. I don't see why you would though, it's growing tax free in the Roth now.

Otherwise, if you are over 70 1/2 and taking RMDs, then you can only put money in your Roth IRA if you are also still working; or if you first take the RMD (which is $0 this year) and then do a conversion of additional funds.
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Old 03-27-2020, 12:32 PM   #30
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The "no RMD's required in 2020" is to allow people the ability to not sell at these depressed market levels (which in itself is a market crutch... less selling!).


If you sold in January or before the market dropped, you weren't harmed... so other than maybe missing an opportunity had you waited longer, I don't understand the need to un-do prior RMDs.
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Old 03-27-2020, 03:03 PM   #31
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Per https://www.kiplinger.com/article/re...-your-rmd.html

Scroll about halfway down -
Distributions from inherited IRAs are not included in the waiver and will still need to be taken in 2020.
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Old 03-27-2020, 04:01 PM   #32
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Our 2018 and 2019 income was high enough to disqualify us for the 1,200 buck dole being passed out. But, without having to take RMD's in 2020, we might just make it under the wire and get our share when doing our 2020 taxes in 2021. That would be nice!
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Old 03-27-2020, 11:06 PM   #33
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>> You can re-characterize it (from ROTH) during this calendar year and put it back in your IRA if you want to.

AFAIK, this stopped in 2018. Too much abuse (maybe because of me <g>)
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Old 03-27-2020, 11:12 PM   #34
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Special situation this year, you can bring it back to the IRA, including taxes (probably to be reclaimed when filing in 2021 for tax year 2020)... so you have to scrape up the tax paid from current cash on hand.
See: Kiplinger - "Congress to Help Retirees Cope With Market Downturn"
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Old 03-28-2020, 06:15 AM   #35
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Per https://www.kiplinger.com/article/re...-your-rmd.html

Scroll about halfway down -
Distributions from inherited IRAs are not included in the waiver and will still need to be taken in 2020.
I see the statement in the article, but I'm not sure I trust a statement like that from a personal finance website without some logic, reasoning, or citation. Especially when it appears to go against the plain language of the bill. I'll be interested to see if others come to the same or different conclusion.
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Old 03-28-2020, 07:51 AM   #36
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Originally Posted by Another Reader View Post
Does that apply to inherited IRA's? Because I'm going to do this if it does.

************************************************** ***

Quote:
Originally Posted by SecondCor521 View Post
It would seem to apply. I don't know of any IRS rule that it wouldn't apply. However, your IRA custodian may not be set up to accept a rollover into an inherited IRA, as that is something that normally would not happen.

.................................................. ..............
************************************************** ***

https://www.bogleheads.org/forum/vie...39785#p5139785
Re: IRS Suspends RMD
Post by Alan S. Ľ Fri Mar 27, 2020 8:31 pm

"Inherited IRA RMDs are waived by the CARES Act.

However, unlike owned IRAs if a distribution (RMD or not) has been taken from an inherited IRA by a non spouse beneficiary, there is no way to get that money back into the inherited IRA."
************************************************** ******

Note the general advice has been to always move inherited IRAs by direct transfer. This is because rollovers are not allowed and result in taxation of the withdrawn amount.
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Old 03-28-2020, 10:33 AM   #37
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The &quot;no RMD's required in 2020&quot; is to allow people the ability to not sell at these depressed market levels (which in itself is a market crutch... less selling!).


If you sold in January or before the market dropped, you weren't harmed... so other than maybe missing an opportunity had you waited longer, I don't understand the need to un-do prior RMDs.
to avoid having to pay taxes on the distribution this year.
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Old 03-28-2020, 10:34 AM   #38
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Can you elaborate on this a little bit? You can't use an RMD to fund a Roth IRA. If you took the money from your IRA and put it in your Roth IRA, then it's a Roth Conversion. You can recharacterize it during this calendar year and put it back in your tIRA if you want to. I don't see why you would though, it's growing tax free in the Roth now.

Otherwise, if you are over 70 1/2 and taking RMDs, then you can only put money in your Roth IRA if you are also still working; or if you first take the RMD (which is $0 this year) and then do a conversion of additional funds.
yes. the RMD is from an inherited IRA. When I can, I use it to fully fund my Roth IRA instead of blowing it. I was shifting stuff around in January anyway so for some reason it seemed like a good idea to go ahead and do that. I'm partially retired I guess still working part time self employed. If I did not have the RMD tho, I don't think I could scrape up the roth money so there's that. I am 57.
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Old 03-28-2020, 12:10 PM   #39
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I see the statement in the article, but I'm not sure I trust a statement like that from a personal finance website without some logic, reasoning, or citation. Especially when it appears to go against the plain language of the bill. I'll be interested to see if others come to the same or different conclusion.
Please post if you find a more definitive citation. I always thought of Kiplinger's as reliable because they have that nice printed magazine.

Hard to know who to believe anymore.

I haven't taken the inherited IRA RMD yet. I don't need the cash and would rather not take it if that option is available.
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Old 03-28-2020, 01:30 PM   #40
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Please post if you find a more definitive citation. I always thought of Kiplinger's as reliable because they have that nice printed magazine.

Hard to know who to believe anymore.

I haven't taken the inherited IRA RMD yet. I don't need the cash and would rather not take it if that option is available.
Forbes apparently disagrees with Kiplinger: Article Here So I guess it comes down to which nice printed magazine you like better.

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Children, grandchildren and others who have inherited IRAs (pretax IRAs and Roth IRAs) must take annual withdrawals regardless of their own age. They too get an RMD holiday for 2020. (Another SECURE ACT wrinkle: Inherited accounts where the original account owner died on Jan. 1, 2020 or later must be depleted in a 10-year window, except for spouses, and select other heirs). Watch out: Taxpayers who miss an RMD can be hit with a 50% penalty tax, on top of regular tax, on what they should have taken.
The CARES act says "The requirements of this paragraph [referring to Section 401(a)(9), which defines required distributions for retirement plans including inherited IRAs] shall not apply for calendar year 2020 to ... an individual retirement plan."

The only thing I see in there that's specific to inherited accounts is: "(II) if clause (ii) of subparagraph (B) applies, the 5-year period described in such clause shall be determined without regard to calendar year 2020.íí So to me, that would mean that if you inherit an IRA in 2020 that would normally be subject to the 5-year distribution rule, you would get an extra year to empty it. If you inherit an account this year that is subject to the 10-year rule, you don't get any relief.
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