When the CARES Act was signed back in March, we had some discussions about whether it was possible to return RMDs that had already been taken early this year. At the time, it seemed like the 60-day rollover window would apply, so anyone who was outside that window was out of luck. Today, the IRS announced an extension that lets any RMD taken this year qualify for rollover until August 31.
https://www.irs.gov/pub/irs-drop/n-20-51.pdf
I hope this is good news for some folks here.
https://www.irs.gov/pub/irs-drop/n-20-51.pdf
C. Extension of 60-day deadline for rollover of certain distributions. To assist plan participants who have already received distributions in 2020, the Treasury Department and the IRS, pursuant to § 402(c)(3)(B), are extending the 60-day rollover period for any payments described in section III.A and section III.B of this notice so that the deadline for rolling over such a payment will not be before August 31, 2020. For example, if a participant received a single-sum distribution in January 2020, part of which was treated as ineligible for rollover because it was considered an RMD, that participant will have until August 31, 2020, to roll over that part of the distribution. In addition, the Treasury Department and the IRS, pursuant to § 408(d)(3)(I), are extending the 60-day rollover period for IRA distributions in 2020 that would have been an RMD in 2020 but for section 2203 of the CARES Act or section 114 of the SECURE Act, so that the deadline for rolling over such distributions will not be before August 31, 2020.
I hope this is good news for some folks here.