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Focus Area: Coronavirus/COVID-19

Upcoming Deadline to Return 2020 RMDs

The Coronavirus Aid, Relief, and Economic Security Act passed earlier this year waived required minimum distributions (RMDs) from qualified retirement plans and IRAs for 2020. Prior to the passage of this Act, some taxpayers had already received 2020 RMD distributions and the Act did not provide any relief to taxpayers who had already received 2020 RMDs.

Accordingly, the IRS announced in Notice 2020-51, that taxpayers have until August 31, 2020 to return any RMDs distributed during 2020. Any amount returned prior to this deadline will be considered a nontaxable rollover and will not be included in the taxpayer’s taxable income in 2020. 

DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.

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