Broker Check

An Important CARES Act Update

July 06, 2020
On March 27th, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. This $2 trillion economic relief package was designed to help blunt the economic impact of the Coronavirus pandemic. Among other provisions, the CARES Act extended the tax filing deadline to July 15th, extended the deadline to make 2019 contributions to traditional or Roth IRAs to July 15th, and waived Required Minimum Distributions (RMDs) for the 2020 calendar year.
The IRS recently issued further guidance on some of the provisions of the CARES Act. The most significant update applies to those who had already received their RMD payment but wished to return those funds. Under the new guidance, any RMD paid in 2020 can be rolled over (i.e. returned to your IRA) if the rollover is completed by August 31st, 2020. Please note that your second quarter statements will contain information in the disclosure section summarizing the changes to the RMD requirements for 2020.
Please contact us if this situation applies to you: you have already received your 2020 RMD payment and would like to return those funds to your account.