457 Rollover, RMD payout, Rollover
Hello. Last week, we rolled over a clients 457 into a Traditional IRA. The 457 plan required her RMD to be paid out first, which she received. Can she roll the 2020 RMD back into her Traditional IRA, which we just setup? Thanks for all of your help during this time. Your information is very timely and helpful!
Permalink Submitted by Alan - IRA critic on Sat, 2020-03-28 19:51
Yes, client can roll over the 457 distribution to her IRA, since the distribution is no longer considered an RMD under the CARES Act. If there was any withholding taken out, she can replace that amount with other money to make the rollover complete and eliminate any taxation.