What You Need to Know About Unwanted RMDs?

The IRS recently released news that is important for those who have retirement savings. In late June, the IRS expanded the relief that was provided by Congress in the CARES Act, which allows for the return of unwanted required minimum distributions. In addition, this law also expanded coronavirus related distribution provision so that more US taxpayers would qualify to receive the benefits.

This means that it could be a good time to discuss your options with your financial advisor if you want to take advantage of this additional relief. Here are some of the most important pieces of data from the IRS rulings. Many savers had already taken part or all of their required minimum distributions earlier in 2020 before they knew about the waiver provided by the CARES Act.

Attempts to initially return unwanted required minimum distributions by rolling those funds back into IRAs or company plans and eliminating the tax bill brushed up against strict rules related to rollovers. However, the June 23rd IRS Notice 2020-51 released significant blanket relief for those people who had unwanted RMDs.

RMDs that had been taken up to that point in 2020 could be rolled back over to retirement accounts. Are you stuck on how to incorporate your retirement accounts and your financial planning into your estate planning? You can leverage the support of professionals to help you get there. An estate planning lawyer and a CPA, for example, can explain what this might look like for you.

For more information about this process and how it could potentially impact your financial and estate planning, schedule a consultation with an estate planning lawyer in VA today.