Partial Rollback of RMD for 2020
I have two questions. I did an RMD of 44100 and withholding of 10% (4410 in February 2020 .Can you do a partial RMD? What happens to the withholding ?
I have two questions. I did an RMD of 44100 and withholding of 10% (4410 in February 2020 .Can you do a partial RMD? What happens to the withholding ?
Permalink Submitted by Alan - IRA critic on Mon, 2020-05-25 00:47
You can roll back the entire 44,100 using your other funds to replace the amount withheld. You have until 7/15 to complete the rollback (all or partial). However, due to the one rollover rule per 12 months limit, you can only roll this back if you did not roll a prior distribution taken in the 12 months prior to the date you received the 2020 distribution. If you did a prior rollover, you will have to qualify for a CRD (corona virus related distribution) to roll back any part of the 44,100. The final requirements for qualifying for a CRD have not yet been released by the IRS.
Permalink Submitted by David Mertz on Mon, 2020-05-25 14:07
Whether or not you do a partial or full rollover of the $44,100 distribution, the $4,410 of tax withholding will be credited on your 2020 tax return.