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No RMDs for 2020; Opportunity to “Undo” RMDs Already Taken
By Kimberly I. McCarthy, Esq. / April 20, 2020

As you undoubtedly have heard, in light of COVID-19, Congress passed legislation at the end of March which (among other things) waived all RMDs for 2020. This waiver applies to traditional IRAs, Roth IRAs, inherited IRAs, and 401(k) plans.

You may not know that many people who took RMDs prior to the law’s enactment can “undo” their RMD and put those funds back into their retirement plan, if they wish. The IRS issued guidance last week expanding both the group eligible to take advantage of that opportunity and the timeframe to get it done. Now most individuals who took an RMD on or after 2/1/2020 can “undo” that RMD via a rollover.

As with all tax rules, there are exceptions: inherited IRA beneficiaries aren’t eligible, qualified charitable distributions generally can’t be “undone”, and some owners who took distributions in January still might qualify.

To learn more, or get assistance with “undoing” an RMD, contact your account team – we are here for you!

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The opinions expressed in this blog are those of the author and may not reflect those of Washington Trust Wealth Management. The information in this report has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Any opinions expressed herein are subject to change at any time without notice. Any person relying upon this information shall be solely responsible for the consequences of such reliance. Performance is historical and does not guarantee future results.

Such information does not constitute legal or professional advice as all situations are unique and are based on individual facts and circumstances.

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