Partial RMD rollover due to CARES relief?
If someone has been taking $5760 per month from their IRA for all of 2020 (9 months of distributions) and they are of RMD age, could they elect to roll back just $10,000 of the $51,840 taken so far, if done by August 31st? Normally the monthly amounts would add up to the approximate RMD each year, but of course this year the RMD was waived. The money is needed for living expenses so the distributions continued, but recipient realizes he will have about $10k more than he needs by the end of the year. He would like to rollover $10k now, before August 31st, as part of the CARES Act RMD rollover provision, but is not sure if he’s able to do just a partial RMD rollover under those rules.
Permalink Submitted by Alan - IRA critic on Fri, 2020-08-21 03:09
SInce he has taken more out so far in what would have been RMDs had they not been waived than he wants to roll back (10k), he should roll back the 10,000 now per Notice 2020-51. As such he will not have to use up a 60 day rollover and should save that rollover in case he needs it sometime in the next year. Deadline is 8/31. There is no requirement to roll back the entire would be RMD, so 10k would be fine.
Permalink Submitted by Linda Taylor on Tue, 2020-08-25 01:58
Thank you so much for your reply and the information. Most appreciated!