We recently blogged about how the CARES Act waived required minimum distributions (RMDs) for 2020 and even allows for an IRA owner or a beneficiary under an inherited IRA who had taken an RMD from their IRA to put it back. But here’s the catch: it has to be returned before August 31, 2020, which is approaching very quickly.
We highly recommend checking out the full blog here, but here are the highlights:
- The CARES Act waived RMDs for 2020 for both IRA owners and beneficiaries under inherited IRAs.
- For inherited IRAs: This only applies to beneficiaries of inherited IRAs from people who died prior to January 1, 2020. For those inheriting money under the new SECURE Act, you still have to liquidate the IRA within 10 years.
- If you already took an RMD for 2020 and do not actually need or want to use the money, you can put it back (but only the RMD amount, not any additional distributions you may have taken).
- You only have until August 31, 2020, to return the money, or you will have to keep it, so if you want to return any RMDs, please contact your accountant and/or financial advisor right away to figure out the best way to return this money.
As always, our team here at Family Estate Planning Law Group would love to help you think holistically about estate planning, from how to set up a plan to make sure your assets are aligned and your whole team of financial professionals and/or caregivers or loved ones are involved. To learn more about how we can help you take care of your loved ones, visit our website, check out our blog, or schedule your complimentary consultation today!
