Question 1

How Did the CARES Act Impact Required Minimum Distributions?

Accepted Answer

The CARES Act waived RMDs for 2020. Anyone that turned 70 ½ in 2019 were not required to take RMDs this year. However, some people may have already taken RMDs by the time the CARES Act passed.

Question 2

If You Took a Required Minimum Distribution, Can You Return It?

Accepted Answer

Normally these cannot be returned, however the IRS allowed the ability to return the distribution back into the fund. The funds had to be returned by August 31st 2020.

Question 3

What if I Missed the Deadline to Return the Required Minimum Distribution?

Accepted Answer

If you missed this extension you can still try to minimize your taxes for 2020 using another strategy. Once every 365 days you can do an IRA to IRA or Roth IRA to Roth IRA rollover. You will still pay taxes on the distribution, but at least you can move the distributed funds to an account where they will grow tax free.

Question 4

I Took My 1st Required Minimum Distribution in 2019, Can I Waive My Required Minimum Distribution?

Accepted Answer

No, the waiver only applies for RMDs starting in 2020. If your RMD started before 2020 the CARES Act waiver doesn’t apply.  What About Taxes That Were Automatically Taken Out?  Unfortunately, the taxes cannot be returned from RMDs already processed. However, at the end of the year, that will be included in the calculation with other taxes returned by or owed to the IRS.

Required Minimum Distributions and the CARES Act Planning