Can 1st RMD taken in December 2019 be recharacterized as a Rollover

For someone whose 70th birthday was on June 1, 2019 and took their 1st RMD in December 2019 from either a 401(k) or an IRA, can this distribution be recharacterized as a 60 day rollover?



  • Short answer No. Long answer – An RMD is never eligible for rollover, but with one exception. If a <5% owner is still working at the end of the 70.5 year, but the plan requires ALL employees to take RMDs, then this is a plan RMD, but not a statutory RMD. As such, the distribution of a plan only RMD can be rolled over within 60 days. This situation applies with very few plans. However, if it does apply and the person qualifies for self certification that the rollover was not completed in 60 days, they might check the eligible reasons stated in Rev Procedure 2016-47 to see if any of them applies. The procedure cannot be applied unless the rollover would have been eligible in the first place.  If so, and if the other requirements of the Procedure are met, the certification can be completed and presented to the the custodian of the rollover contribution along with the amount to be distributed. Should the custodian accept the form and rollover contribution, they must report this on Form 5498 to you and the IRS, and the IRS will then either accept or contest the late rollover.
  • Assuming the person had retired, and these RMD distributions were statutory RMDs, they cannot be rolled over at all.
  • Even though the age 70.5 RMD can be deferred to 4/1 of the following year, if a distribution is made in the RMD year, it is treated as an RMD because the first distribution made in an RMD distribution year is applied toward the RMD. Therefore, the person could not claim that the Dec. distribution was NOT an RMD because they are deferring the RMD to 2020.
  • Re Secure Act provisions – this individual reaches 70.5 in 2019 and therefore will not be affected by the 2020 change of age for the start of RMDs to 72. Even though the person will not yet be 72 in 2020, they must also complete their 2020 RMD, as indicated in the Secure Act legislation.

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