Part of the CARES Act provides that taxpayers do not have to withdraw their required minimum distribution (RMD) from IRAs, defined contribution plans and section 457 plans for 2020. This includes RMDs from inherited IRAs and IRAs first required to be withdrawn by April 1, 2020 (the “required beginning date”).
RMD Planning Tip: Taxpayers can normally deposit an IRA or retirement plan distribution back in the retirement account within 60 days tax-free. If in the last 60 days you took what at the time was your RMD and under the CARES Act you no longer have an RMD for the year, you can roll the funds back in your retirement account tax-free.
At this time any distribution more than 60 days ago is taxable with no fix. Keep in mind that only 1 rollover of this type is allowed per 12-month period in case you already had a rollover in the past 12-months or you may want to make use of that provision later this year.
Roth IRA Planning Tip: Roth IRA conversions are normally best to do when the market is low and your income is low. Now may be a good time to consider whether a conversion of a traditional IRA to a Roth IRA may be right for you.