Inherited IRA RMD Rollover

Submitted by Jason Hochstadt on Sat, 2020-07-18 12:29

Hello –

Just confirming that w/ The Cares Act enabling Inherited IRAs to roll back RMDs taken in 2020 by Aug. 31st:

1. It is not an all or nothing decision – meaning if an RMD was $20k, for example, someone can choose to roll back 10k if they so choose (rather than the full $20k or nothing); and

2. The funds may be rolled into ANY retirement plan maintained by the individual; it doesn’t have to go back to the IRA from which the RMD was taken (at the client’s discretion).

Thank you!

Jason



Submitted by Alan - IRA critic on Sat, 2020-07-18 17:55

  1. The beneficiary can roll back any portion of the RMD they wish, just like any other partial rollover.
  2. No, the roll back must go into the distributing inherited IRA account, as clearly stated in Notice 2020-51. These are only RMDs, therefore it is unlikely that the account balance has now been transferred elsewhere.  But if it has, it may still be possible that the custodian would accept a rollover up to 8/31 to the now empty balance account, after which the beneficiary can transfer that balance to another account if desired. 

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