New Rollover Rules for 2020 RMDs

Happy Fourth of July from the Bertz, Hess Professional Service Team!  We are going to keep things very brief as we are all looking forward to kicking off the holiday weekend.  Today we are covering an update on 2020 Required Minimum Distributions (RMDs) and a few other reminders. 

Tax-Free Rollover of 2020 RMDs

As we have discussed in our previous communication, the CARES Act has waived the 2020 RMD requirement for IRAs and other qualified retirement plans.  With the Act being passed in March of 2020, many individuals may have already begun taking their RMDs.  Not only that, the IRS typically allowed a grace period of 60 days to roll the distribution back into their plans.  For many individuals, this grace period had also expired prior to the passing of the CARES Act.

In response to that, the IRS has recently extended the 60-day period to August 31, 2020 in an effort to help those who had already taken their RMD.  This gives the individual the ability to continue to defer the tax if they choose.  Historically, individuals were only allowed one 60-day rollover per 12 months.  These repayments under the CARES Act will not count towards that one instance.  One thing to keep in mind is that plan documents would need to be updated for any of the changes mentioned above. 

Updates and Reminders

July 15th deadline – Yes, we are mentioning it again! There could be a number of income tax payments due on July 15th.  Given the impact of COVID-19 on many small businesses, take some time and consult with our Bertz, Hess & Co. professional team on what makes sense for your 2020 estimated payments.

Where’s my Refund? – For those of you still waiting on your refund, don’t forget that you can check the status at With refunds being delayed, many taxpayers are receiving their refunds plus interest!

Your Bertz, Hess & Co. tax and business advisor will be happy to discuss the options involved with your 2020 RMDs and any other questions that you have!

Thank you and enjoy the holiday weekend! 

The Professional Service Team at Bertz, Hess & Co., LLP

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