Waiver of 2020 RMD and Extension of Rollover Period to August 31, 2020 for Solo 401k and IRA

The IRS has released Notice 2020-51. This notice provides guidance relating to the waiver in 2020 of required minimum distributions (RMDs) from certain retirement plans including solo 401k plans, and IRAs. The notice extends the 60-day rollover period to August 31, 2020. This means that if you took a RMD anytime in 2020, you have until August 31, 2020 to roll the funds to a 401k including a solo 401k or to an IRA.

Illustration: 

If you took an RMD on January 2, 2020 from your solo 401k, you have until August 31, 2020 to return the RMD to the solo 401k plan or to an IRA. Also, if you have taken multiple RMDs, those can also be rolled over as the once-per year rule is waived under the Notice 2020-51. Lastly, this notice only applies to RMDs.

Before the release of Notice 2020-51, the RMD rollover had to be processed by July 15, 2020, so this notice extends the deadline by about 45 days.

More CARES Act Information

CARES Act Further Broken Down

Solo 401k Participant Loan 

Solo 401k Distributions

Spreading the Income Tax Over 3 Years

CARES Act FAQs

June 19, 2020 IRS Notice 2020-50

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 >>

MENU