RMD Return
Submitted by Kaizen Financial Advisors, LLC on July 31st, 2020
In an effort to minimize the economic fallout of the COVID-19 pandemic, the government is not requiring you to take an RMD from your IRA or inherited IRA accounts this year. For those who took RMD earlier in the year, the IRS is now allowing you to repay that RMD back into your IRA. This allows additional time for investments to grow tax deferred.
If you plan to take advantage of the opportunity to return your RMD to your IRA, we wanted our clients to note a couple important details. First, it must be completed by August 31, 2020. Secondly, any tax withholding remitted to the IRS to cover the taxes is not reversible. This simply means you will have contributed extra withholding for the year which will be reconciled with the submission of your 2020 tax return.
If you plan to roll your RMD funds back into your IRA, please reach out to your Kaizen Advisor with enough time to facilitate the transfer prior to that August 31st deadline. As always, we are happy to help.
