As you may have heard, the CARES Act (aka the Coronavirus stimulus bill) created a holiday for mandatory distributions from retirement accounts in 2020.
So if you’re otherwise required to pull money from your IRA or 401(k) this year, you can skip it – penalty free. This includes retirement accounts of your own AND those inherited from someone else. Pretty neat, right?
But remember, the CARES Act wasn’t passed until March. What if you’ve already taken a distribution? Can you put it back?
The good news is yes, you can, as long as it’s done by August 31st. Whereas this wasn’t initially the allowable, updated guidance from the IRS says that those of you who took RMDs in January or February can now replace them.
Read on for the details on how to put back your RMD if you’ve already taken one, and when you might still want to take a distribution if you haven’t already.