required minimum distribution - Linkenheimer LLP CPAs & Advisors

8/31 is Deadline to Repay Any Required Minimum Distributions Taken in 2020

The Internal Revenue Service announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020.

The 60-day rollover period for any RMDs already taken this year has been extended to August 31, 2020, to give taxpayers time to take advantage of this opportunity.

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.

In addition to the rollover opportunity, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020. The notice provides […]

By Linkenheimer LLP|2020-09-03T20:02:05+00:00August 13th, 2020|deduction, deductions, ira, New Tax Laws|0 Comments

Deadline for Receiving First 2016 IRA Required Minimum Distribution (RMD) Is April 1

Individuals who turned 70 1/2 in 2016, but opted to wait until 2017 to begin taking their RMD for 2016 must receive their 2016 RMD by 4/1/17, even though that date falls on a Saturday. IRS Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs), does not offer an alternative date, such as the following Monday, 4/3/17, to receive the distribution, so please keep that in mind. If you have any questions, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:04:58+00:00March 3rd, 2017|ira, irs|0 Comments

April 1 Required Minimum Distributions Deadline Approaching

Individuals who attained age 70 1/2 in 2015 must begin taking Required Minimum Distributions (RMDs) from their traditional IRAs by 4/1/16. Qualified retirement plan participants (e.g., 401(k) participants) also must begin taking RMDs if they reached age 70 1/2 or retired in 2015, whichever came later (except for 5% owners, who are subject to the IRA rules). Note that a qualified plan may require all employees (including non-5% owners) to take RMDs by April 1 of the year following the year the employee attains age 70 1/2. If you have any questions about the deadlines or RMDs, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:05:14+00:00March 29th, 2016|ira, retirement|0 Comments