The need for taking required minimum distributions (RMDs) from qualified retirement plans and IRAs for 2020 was waived by the CARES Act, but many people had already taken them by the time the law was enacted. Typically, you have 60 days to make a rollover (i.e., redeposit the funds in the account) and avoid tax on a distribution. The IRS extended this period to August 31, 2020, to give more time to undo RMDs if desired. Whether a rollover is advisable depends on each individual’s tax and financial situation.
Barbara Weltman
Big Ideas for Small Business, Inc.
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