I hope all of my readers are well.
In my last posting, I wrote about how the CARES Act waives required minimum distributions from retirement accounts for 2020, and, if you’ve already taken a distribution this year, that you can return it under certain circumstances.
I write now because we have some clarification from the IRS about exactly what distributions can be returned. The IRS has extended the deadline to return the funds to July 15, but ONLY if you can answer YES to the following two questions:
- Was the distribution from a retirement account to which you made contributions or an IRA that was inherited from your spouse?
- Did you take the distribution after January 31?
If your answer to either of the questions is no, you are out of luck. Why can’t distributions taken in January be returned? I have no idea.
I hope this is helpful to you. Please take care and stay safe.
Very truly yours,