I recently wrote a blog about the enhanced RMD wavier that went into effect in June. You can find it here. Long story short, COVID-19 happened, and everything was instantly different. One of the actions that was taken by the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act was that certain retirement accounts were not required to take their Required Minimum Distribution (RMD). This allowed someone the ability to leave their money in a tax deferred account if they desired to.
The only problem is the news came in March and many people had already taken their RMD for the year. There are different ways you can choose to take your RMD, but most people have it set up to automatically come out to ensure they do not forget to satisfy their requirement. If you had all or some of your RMD already taken out when the CARES Act went into effect, you felt like you missed the boat. Thankfully, there was an enhancement that allows you to put the money back into the retirement account it came from (see article link above). Time is running out though! It needs to be done by…
That’s the day. Normally, you may feel like you have time and it won’t be hard to get the money back but if we learned anything from this virus, it’s that all processes are different now. People working from home, staff being let go, anything to slow down a simple task. So, get started right away if you want to make sure you can get your RMDs back into your retirement account.
If you need help reach out to your financial advisor. They can help you to get you RMDs returned correctly.