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Sandusky, Ohio Office
422 West Market Street
Sandusky, OH 44870
419-625-4942
866-293-2727
FAX: 419-625-7120
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Norwalk, Ohio Office
257 Benedict Avenue, Building D
Norwalk, OH 44857
419-668-2552
800-860-0152
FAX: 419-663-3637
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Monday–Friday: 8 am – 5 pm
   
Fridays from May 1 through
Labor Day we close at noon.

Fridays from September 11 through October 31 we close at 3 pm

 

 

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CPAs Net

IRS Issues Additional Guidance on Relief from Required Minimum Distributions (RMDs) 

  
 Julu 29, 2020
Payne, Nickles & Company

 

Turning 72 (70 ½ before 2020) has meant you have to withdraw money from your traditional IRAs and 401K plan each year.  These withdrawals are called Required Minimum Distributions or RMDs.

  

The CARES Act waived these RMDs for 2020 and for individuals who had already taken a distribution, rollover rules permitted some of the distributions to be returned to the IRA. 

  

Notice 2020-51 has expanded the rollover rules. Withdrawals taken in 2020 are eligible to be returned to the IRA as long as the transaction is completed by August 31, 2020. This repayment will be treated as a tax-free rollover and isn’t subject to the “one rollover every 12 months” rule. Owners of inherited IRAs and other inherited plans also now qualify for the waiver.  This gives retirees the flexibility to keep their money in their retirement account and recover any lost value because of market fluctuation related to COVID-19.

  

If you have questions regarding RMDs and repayment rollovers, please call our office! 

 
 

419-625-4942             419-668-2552
Sandusky                             Norwalk

 

 

 

Treasury Circular 230 Disclosure

Unless expressly stated otherwise, any federal tax advice contained in this communication is not intended or written to be used, and cannot be used or relied upon, for the purpose of avoiding penalties under the Internal Revenue Code, or for promoting, marketing, or recommending any transaction or matter addressed herein.