RMD Rollover
Question: re: new IRS guidance – Notice 2020-51
Does the IRS guidance require the RMD amount to be repaid (rolled over) to the same IRA or plan the funds originated? Or can plan funds be rolled over to any (non Roth) IRA or vice versa (assuming the plan allows roll-ins)
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2020-07-06 14:32
If using the the Notice and 8/31 deadline, a qualified plan distribution can be rolled into any eligible retirement plan, but an IRA distribution must be rolled into the distributing account. These requirements reflect that many qualified plans will not accept such rollovers, but all IRA custodians are expected to accept them. It also provides the IRS with some control that the amounts being rolled over do not exceed the amount that would have been the RMD.