Latest IRS Reminder on No RMD Requirement in 2020

On July 17, 2020 the IRS released a reminder relating to not being required to take required minimum distributions (RMDs) in 2020 from IRAs and retirement plans such as 401k plans including solo 401k plans for the self-employed.  

The waiver of the 2020 RMD from IRAs and solo 401k plans, for example, result from the Coronavirus Aid, Relief, and Economic Security Act which waives required minimum distributions during 2020 and also includes waving distributions for beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70 ½ in 2019 and took their first RMD in 2020.

Don’t Forget About the August 31, 2020 Deadline

The IRS issued reminder also cautions that those IRA and solo 401k plan holders who  have already taken their RMD in 2020 have until Aug. 31, 2020 to return the funds to the IRA or the 401k in order to avoid paying taxes on the distribution.  

More Information

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CARES Act FAQs

Solo 401k Participant Loan 

Solo 401k Distributions

Spreading the Income Tax Over 3 Years

June 19, 2020 IRS Notice 2020-50

IRS Notice 2020-51 Extends RMD Rollover Period to August 31, 2020

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About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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