Took RMD in 2020. Can they reverse the distribution?
New client didn’t know they did not have to take their RMD last year and took it. Can they reverse their distribution and put the money back in their IRA?
New client didn’t know they did not have to take their RMD last year and took it. Can they reverse their distribution and put the money back in their IRA?
Permalink Submitted by David Mertz on Fri, 2021-03-19 16:15
They could have, but it’s too late now to do so. The deadline for returning to the IRA what would have been an RMD were it not for the CARES Act was the later of August 31, 2020 or the 60th day following the date of the distribution.
Permalink Submitted by Jim Musgrave on Fri, 2021-03-19 17:28
I assumed that was the case. I just wanted to be sure. Thanks!!!