2020 IRA/401 (k) Required Minimum Distributions Update
SECURE Act and the CARES Act have ‘paused’ individual
taxpayers with IRAs and 401k investments from having to take a
Required Minimum Distribution in 2020. Those who did so prior
to the announcement that the RMDs are being waived for 2020,
have until August 31, 2020 to return them if they wish. It is
our understanding that if taxes were withheld from the early
distributions those will not be returned. However, the
withheld taxes will be credited to one’s 2020 tax obligations.
If one chose to take an RMD and donated the funds to qualified charitable organization/s, the RMD is not taxable to either the donor or the qualified charitable organization/s.