The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted on March 27, 2020, included provisions which waived required minimum distributions (“RMDs”) for 2020 from defined contribution plans and individual retirement accounts (“IRAs”). This includes initial RMDs that would have been required by April 1, 2020 due to a terminated participant reaching age 70 ½ in 2019, or an active participant who reached age 70 ½ in or before 2019 and terminated employment in 2019 or 2020.
The Treasury Department recently released Notice 2020-51 to provide guidance on these new provisions.
- Plan Participants have until August 31, 2020 to roll any RMDs already made in 2020 into a eligible retirement plan
- IRA Account Owners and Beneficiaries have until August 31, 2020 to repay any RMD back to the distributing IRA.
- Guidance provided on required amendments for 2020 waived RMDs, including a model amendment
For additional information on the impact of Notice 2020-51 on your specific tax situation please contact your Janover professional.