Monthly RMDs from Jan thru April

Submitted by Daniel Li on Mon, 2020-05-18 18:45

I have taken 4 monthly RMDs from Jan. 2020 – April 2020.

1. I plan to rollover the Feb RMD to IRA. I did not make a rollover in the last 12 months.
2. I plan to aggregate the March and April RMDs and convert to Roth IRA OR rollover to 401k

Am I doing these correctly?

Daniel

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Permalink Submitted by Alan - IRA critic on Mon, 2020-05-18 18:53

Yes, unless you qualify for a CRD (corona virus related distribution), you have selected the best course of action since you are only allowed to roll one of these distributions back to a TIRA account, and with all the distributions about the same value, you should roll back the oldest one possible (Feb). The deadline to complete the allowed rollovers or conversions is 7/15/2020. Currently, there is no rollover relief for the January distribution barring CRD eligibility, but it’s possible there could be with any additional relief bills.

Permalink Submitted by Bruce Steiner on Sat, 2020-05-23 15:16

The HEROES Act which passed the House would allow the repayment by November 30, 2020, of distributions that would have been required but for their waiver by the CARES Act: https://docs.house.gov/billsthisweek/20200511/BILLS-116hr6800ih.pdf. See pages 659-660.

The Senate majority leader and the President oppose much of the HEROES Act, so we’ll have to wait and see what if anything is enacted. This provision shouldn’t be controversial.

Bruce Steiner

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