The CARES Act, passed earlier this year, enabled any taxpayer with a Required Minimum Distribution due in 2020 from a defined-contribution retirement plan, including a 401(k), 403(b), or an IRA, to skip those RMDs this year.

Yesterday, the IRS issued Notice 2020-51, which provides tax relief to individuals who have already taken a required minimum distribution in 2020.

If you have already taken a Required Minimum Distribution in 2020, you have until August the 31st of 2020 to deposit the funds back into your retirement account which would allow you to classify the transaction as an indirect rollover. This means the distribution would not be a taxable event to you.

Full IRS Notice 2020-51 can be found here: https://www.irs.gov/pub/irs-drop/n-20-51.pdf

Gregg Brant, CFP®, APMA®, MBA

Family Wealth Advisor | Contributor

Gregg is a financial planner who is passionate about helping first responders and their families navigate their financial lives with confidence. Having a spouse who is a professor in the State University System, Gregg has worked with the Florida Retirement System first-hand for his own personal financial planning.

Now Gregg is on a mission to take this knowledge and disseminate it to the people who deserve it most; our first responders.