RMD Inherited IRA’s CARES ACT
If someone is taking RMD’ from an inherited IRA (Once a year).
Lump sum came out from mother’s account March 16th.
Can they put this back into the inherited IRA and then resume RMD’s in 2021.
If someone is taking RMD’ from an inherited IRA (Once a year).
Lump sum came out from mother’s account March 16th.
Can they put this back into the inherited IRA and then resume RMD’s in 2021.
Permalink Submitted by Alan - IRA critic on Mon, 2020-06-01 19:42
No. Any distribution taken from a non spouse inherited IRA will be taxable and not eligible for rollover. The CARES Act did not change this long standing rule. If the person is not maxing out their own retirement plans for 2020 and beyond, they should consider using the funds distributed from the inherited IRA to increase their contributions to current plans. The tax benefit will offset some of the inherited IRA taxable income, and the increased contributions will be to a plan for which RMDs will be both smaller and start later.
Permalink Submitted by David Berdow on Mon, 2020-06-01 21:14
Thank you