The US Internal Revenue Service (IRS) has provided guidance on the waiver of required minimum distributions (RMDs) under certain retirement plans, i.e. withdrawals that are required to taken by plan participants after they reach a maximum retirement age.
Notice 2020-51 allows taxpayers who receive certain plan distributions to roll them into an eligible retirement plan, provides a 60-day extension of the roll-over period to 31 August 2020, answers a number of related questions regarding the waiver of 2020 RMDs, and provides a sample plan amendment under which participants and beneficiaries can choose whether or not to receive distributions.
The roll-over relief is being provided in order to align with the intent of the CARES Act that permitted taxpayers to waive such distributions in 2020, according to the notice.
This notice follows recent guidance on relief provided under the CARES Act for early distributions and loans from retirement plans.