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.