Avoiding Or Rolling Over Required Minimum Distributions Already Taken In 2020

To prevent individuals from being forced to liquidate assets in their retirement accounts at greatly reduced values to fund a Required Minimum Distribution (RMD), the Coronavirus Aid, Relief, and Economic Security (CARES) Act allows individuals to waive such RMDs from their individual retirement accounts (IRAs) and/or their 401(k), 403(b) or 457(b) accounts during 2020. Furthermore, if an individual has already taken their RMD for tax year 2020, they may be able to roll their RMD back into an IRA (or company plan) and avoid paying income tax on this distribution for tax year 2020.

Direct Rollovers

Traditionally, the most straightforward way to accomplish an IRA rollover is though a trustee-to-trustee transfer. Under this method, also known as a direct rollover, the financial institution holding a taxpayer's IRA makes a payment from the IRA to another IRA or to a retirement plan. There are no limits on the number of direct rollovers that may be executed by a