Secure Act 2020 - Required Minimum Distributions

The coronavirus stimulus bill that became law in late March suspended the RMD requirement for this year. But what if you already took your required minimum distribution for 2020, and now you wish you hadn’t?

You may be able to put the money back into your retirement account.

Required minimum distributions (RMDs) are Uncle Sam’s way of finally getting his hands on some of the money that’s grown tax-deferred for decades in your traditional 401(k) or IRA. Starting in your early 70s, you must withdraw a minimum amount from your account each year and pay income taxes on it, whether you need the money to live on or not. (Congress late last year pushed the age when you need to start RMDs to 72 from 70 ½ for people who had not yet begun their distributions.)