This may have been previously mentioned, but if so, I missed it. I normally take my RMD about this time of year, and that's when I ran across this information.
 
Part of the CARES Act (Coronavirus Aid, Relief, and Economic Security) cancels any required minimum distribution from your IRA for 2020 (this would relate to older folks 70.5 years old or older). If you've already taken the RMD for 2020, you can put the same amount back into your IRA and it is treated as a rollover. The CARES Act is the same law that handed out $1200 to most individuals.
 
In the linked document, there is all sorts of information relating to other types of retirement accounts too.
 
IRS Notice 2020–51 Guidance on Waiver of 2020 Required Minimum Distributions

Thank you for posting that. I hate taking an RMD because we don't need the money right now. It pretty much sucks adding that to my income.

Good news. That will help us tax wise. Like Bytes, we don't need the extra money yet.

Jim

Hope my ex-MIL does not hear of this, but I bet her accountant will tell her. There goes my January travel expenses gift

Any word on if the annual gift exclusion will be exempted in 2021?

I thought that age requirement was changed to 72.5 yrs old or was that just talked about?

I'll probably pass on it but in the past I used it to gift the young folks in the family. This year I'll just take the money out of savings.

quote:

I thought that age requirement was changed to 72.5 yrs old or was that just talked about?

^^^^^^^^^^^^^^^^^
Download the IRS document, it contains the answers.

Here is a complete explanation of the new exemption.

https://www.schwab.com/resourc...rgo-taking-rmds-2020

Jim

quote:

Originally posted by gjgalligan:
I thought that age requirement was changed to 72.5 yrs old or was that just talked about?

I found this.

The Secure Act increased the required minimum distribution (RMD) age from 70 1/2 to 72, marking the first change to the RMD age since first becoming law in 1986. The age increase will only apply to anyone born on or after July 1, 1949.

https://www.forbes.com/sites/k...ld-you/#39adb0c97a75

Assume you do not have to submit any signed forms unless you want to reinvest or you were on a schedule.

Interesting. We missed that and especially the part of it applying to inherited or beneficiary accounts. We’re not of RMD age, but have some beneficiary accounts, smaller $$/fixed interest rates, both factors negate us applying the waiver especially without the needed intent to make up potential market losses.

Thanks for posting, I hadn't heard. I've got a few more years before RMDs, but do have an Inherited IRA that I would have had to withdraw from.

Maybe by next November the Royal Dutch Shell stock I bought will have recovered!

On the plus side, next year's RMD will be based on the low value as of 12/31/2020.