RMDs & Roth IRAs: Today’s Slott Report Mailbag

Thursday, April 16, 2020

By Sarah Brenner, JD
IRA Analyst
Follow Us on Twitter: @theslottreport

Question:

I took 25% of my 2020 required minimum distribution (RMD) from an inherited IRA on March 15, 2020. Can that be “undone” in accordance with the CARES Act and if so, how?  Thanks.

Audrey

Answer:

Hi Audrey,

The CARES Act waives RMDs for 2020. The waiver does include inherited IRAs. However, any amounts already taken from an inherited IRA by a nonspouse beneficiary cannot be rolled over. That is because the regular rollover rules still apply, and those rules do not allow a nonspouse beneficiary to do rollovers. If you are a spouse beneficiary, the rules are different. A spouse beneficiary can roll over distributions from an inherited IRA.

Question:

I have always had a traditional IRA. I plan to start a Roth IRA for the tax year 2019. Do I have until July 15, 2020 to make my first $7,000 contribution?

Answer:

Yes. The IRS has confirmed that the deadline for making both traditional and Roth IRA contributions for 2019 is delayed until July 15, 2020.

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