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Returning Your RMD

| April 16, 2020

Hope you’re well and staying healthy! As you know, we have gone through many changes lately due to the impact of the COVID-19 coronavirus and federal lawmakers’ response to it via the CARES Act. One of those changes is really important to retirees, and it has to do with Required Minimum Distributions (RMDs).

Now through the remainder of 2020, you do NOT have to take your RMDs (including Beneficiary RMDs). And if you were required to start taking your first year of RMDs in 2019, but still hadn’t taken them by April 1, 2020, you can skip the 2019 withdrawal too. This way, the money can stay in your tax-advantaged retirement accounts and continue to grow or recover with the market. No deadlines to miss, no penalties to pay, and one less thing to think about during this very unusual time.

One question that is coming up frequently, “Can I return my RMD?” If you are considering returning your Required Minimum Distribution you took this year, here are some key points to keep in mind.


Am I eligible to return my RMD?


  • RMD Distributions can be returned if they were taken between Feb 1 and May 15 of this year.
  • RMD Distributions taken in January are not eligible
  • RMD Distributions from a Beneficiary IRA are not eligible
  • The IRS relief does not cover the once-per-year IRA rollover rule. If an IRA owner did any IRA-to-IRA rollover (or any Roth IRA to Roth IRA rollover) within the 365 days preceding the receipt of the RMD, they don’t qualify for this extension.
  • The once-per-year rule does not apply to company plans, so if you took your RMD from a 401(k) for example, you can use this extension to roll it over to the plan or an IRA and eliminate the tax bill.

How long do I have to return my RMD?

  • Normally you can only rollover a distribution within 60 days; however, as part of a larger relief package, the Internal Revenue Service extended the 60-day rollover rule for individual retirement accounts until July 15. (IRS Notice 2020-23)

How do I return my RMD?

  • A return of your Required Minimum Distribution is known as a rollover contribution.
  • You may make a rollover contribution to any of your IRA accounts with the same amount you took as the distribution (including tax withheld).
  • On your next tax return (2020), you will get a refund for the taxes previously withheld.   

Please contact Anne Wheeler, from our office, if you would like to return your RMD via a rollover contribution.