Posted by on July 21, 2020
If you are among the folks who took their required minimum IRA distribution prior to the CARES Act, which removed the RMD requirement for 2020, there is still time to unwind this transaction. Previously one could only “un-do” their distribution and return the monies to the IRA within a 60-day window. For this year alone, however, you now have until August 31st to shift monies back. Of course if you need the distribution for living expenses, or are in a very low tax bracket, this is likely a non-issue. But if you don’t require the money and are in a higher tax bracket, the savings could be a boon. Bear in mind that if you had taxes withheld from the distribution you also would want to pay these back to the IRA from another source or the amount withheld from the RMD for taxes is considered income to you (despite your never having seen it!)
