New IRS Guidance for RMD Rollbacks

In an unexpected move on Tuesday, the IRS announced new guidance around required minimum distribution (RMD) rollbacks. The new guidelines state that those who took a 2020 RMD can roll funds back into a retirement plan by, or before, August 31st.

The March CARES Act included a waiver that allowed some retirement account owners to waive their RMD, but it fell short in limiting the amount of time to take action for those who had already withdrawn funds. These new guidelines offer a tremendous boost of assistance and assurance to extend benefits to individuals who took out funds at the beginning of the year, or for IRA beneficiaries. 

 Your personal financial circumstances should determine your approach to this news. Given the RMD is considered taxable incomethis can be an opportunity for some to take advantage of a tax-reduction. In contrast, others may find it more tax-efficient to leave the funds if they are already withdrawn.

Additional financial relief efforts and extensions in response to the pandemic are expected, but restrictions may apply to eligibility. We ultimately believe that as long as our clients and friends stay the course we’ve charted together, there will be minimal impact on current and future financial planning and retirement funds. However, we do want you to be aware of the RMD rollbacks and benefits, so please contact our team to discuss further how this applies to you.

We want to reassure you that we’re here to answer your questions and ease your financial concerns. During this time, we hope you are finding comfort in knowing that the stability of your financial plans continues to be our highest priority. 

In the meantime, everyone on our team is available to discuss any topics or questions you have on your mind. To learn more about RMD waivers and rollbacks, or for questions, advice, or just a moment of our time to talk, please reach out to us anytime. Please email us or call either our Pittsburgh office at 412-781-7100 or our Greensburg office at 724-836-7001. 

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