Congress may let you skip your 2020 rmd from retirement accounts

[Conan]

Congress may let you skip this mandatory withdrawal from retirement accounts

Congress may let you skip this mandatory withdrawal from retirement accounts

As the House and Senate hash out coronavirus relief bills, one measure pops up in both proposals: Waiving required minimum distributions for workplace retirement plans and IRAs.

www.cnbc.com

 

[geekette]

Good.

I would urge people with ideas to contact their reps in DC.

 

[Talent312]

Some of us have already taken our RMS's, and spent it.
--------------------------
I just read that there is a provision for that which says:

"[T]he taxpayer may recontribute the funds to an eligible
retirement plan within three years without regard to that
year’s cap on contributions."

... which seems to suggest that, yes, there is a Santa Clause.
But do I have to pay tax on the distribution, even if repaid?
Stay tuned, I 'spose.


.
.

 

[pedro47]

I pray this measure passed the Senate & the House.
I was in for a big hit for tax year 2020.

 

[Conan]

It's in the Senate Bill

https://assets.documentcloud.org/documents/6819239/FINAL-FINAL-CARES-ACT.pdf

SEC. 2203. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS

(a) IN GENERAL.—Section 401(a)(9) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(I) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBUTION.—

(i) IN GENERAL.—The requirements of this paragraph shall not apply for calendar year 2020 to—

(I) a defined contribution plan which is described in this subsection or in section 403(a) or 403(b),
(II) a defined contribution plan which is an eligible deferred compensation plan described in section 457(b) but only if such plan is maintained by an employer described in section 457(e)(1)(A), or
(III) an individual retirement plan.

(ii) SPECIAL RULE FOR REQUIRED BEGINNING DATES IN 2020.—Clause (i) shall apply to any distribution which is required to be made in calendar year 2020 by reason of—

(I) a required beginning date occurring in such calendar year, and
(II) such distribution not having been made before January 1, 2020.

(iii) SPECIAL RULES REGARDING WAIVER PERIOD.—For purposes of this paragraph—

(I) the required beginning date with respect to any individual shall be determined without regard to this subparagraph for purposes of applying this paragraph for calendar years after 2020, and
(II) if clause (ii) of subparagraph (B) applies, the 5-year period described in such clause shall be determined without regard to calendar year 2020.

(b) ELIGIBLE ROLLOVER DISTRIBUTIONS.—Section 402(c)(4) of the Internal Revenue Code of 1986 is amended by striking ‘‘2009’’ each place it appears in the last sentence and inserting ‘‘2020’’.

 

[pedro47]

Thanks you Conan.!!,

 

[Passepartout]

Sounds promising, but remember, it isn't law until it passes the House AND is signed by the president. Keep watching.

Jim