The IRS Provides RMD Rollover Relief

The IRS Provides RMD Rollover Relief

On June 23, 2020, the Internal Revenue Service released Notice 2020-51 that provides relief to taxpayers who had already taken their required minimum distributions (RMD) prior to the CARES Act that suspended the requirement for 2020.

The CARES Act waived RMDs from defined contribution retirement plans, including a 401(k) plan, 403(b) plan, or an IRA. This relief is also for taxpayers who turned 70½ in 2019 and were required to take their first RMD by April 1, 2020. However, the waiver does not apply to required distributions from defined benefit plans.