Permalink Submitted by Alan - IRA critic on Thu, 2020-03-26 16:57
Edited from earlier: It appears that the preliminary wording in the stimulus bill (not yet law) provides for this 2019 RMD to be waived to the extent it was not taken prior to 2020. As such, I suggest she wait for the passed version to be verified in this respect. If it turns out this RMD was due by 4/1, she can take the RMD at that time and file a 5329 to request waiver of the penalty with your 2020 return. That request would surely be granted. This might be easier than rushing now to complete the 2019 RMD by 4/1, then having to roll it back within 60 days. The proposed legislation seems to then allow for her 2020 RMD to be waived as well, but that’s two RMDs waived in her situation. However, she has plenty of time to wait for resolution of the 2020 RMD. This should all be resolved very soon.
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-26 16:57
Edited from earlier: It appears that the preliminary wording in the stimulus bill (not yet law) provides for this 2019 RMD to be waived to the extent it was not taken prior to 2020. As such, I suggest she wait for the passed version to be verified in this respect. If it turns out this RMD was due by 4/1, she can take the RMD at that time and file a 5329 to request waiver of the penalty with your 2020 return. That request would surely be granted. This might be easier than rushing now to complete the 2019 RMD by 4/1, then having to roll it back within 60 days. The proposed legislation seems to then allow for her 2020 RMD to be waived as well, but that’s two RMDs waived in her situation. However, she has plenty of time to wait for resolution of the 2020 RMD. This should all be resolved very soon.