The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 suspended the general requirement that annual distributions must be taken from tax-favored retirement plans and IRAs when an account owner reaches Required Minimum Distribution (RMD) age.

The IRS has recently announced a change, Notice 2020-51, for those who already took a RMD from certain retirement accounts in 2020. This change will allow the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020.

Notice 2020-51 includes:

  • Extending the normal 60-day rollover period to permit repayments through August 31, 2020, of waived 2020 RMD amounts.
  • Allowing repayments without regard to the one-per-12-month rollover limitation.
  • Permitting repayment by non-spouse beneficiaries of waived 2020 required distributions — without violating the statutory prohibition on non-spouse indirect (60-day) rollovers.

To learn more about Notice 2020-51, visit irs.gov.