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Here at Donato Wealth Management, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Donato Wealth Management
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RMDS & ROTH IRAS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD
IRA Analyst

Question:

I took 25% of my 2020 required minimum distribution (RMD) from an inherited IRA on March 15, 2020. Can that be “undone” in accordance with the CARES Act and if so, how?  Thanks.

Audrey

Answer:

Hi Audrey,

The CARES Act waives RMDs for 2020. The waiver does include inherited IRAs. However, any amounts already taken from an inherited IRA by a nonspouse beneficiary cannot be rolled over. That is because the regular rollover rules still apply, and those rules do not allow a nonspouse beneficiary to do rollovers. If you are a spouse beneficiary, the rules are different. A spouse beneficiary can roll over distributions from an inherited IRA.

Question:

I have always had a traditional IRA. I plan to start a Roth IRA for the tax year 2019. Do I have until July 15, 2020 to make my first $7,000 contribution?

Answer:

Yes. The IRS has confirmed that the deadline for making both traditional and Roth IRA contributions for 2019 is delayed until July 15, 2020.

https://www.irahelp.com/slottreport/rmds-roth-iras-todays-slott-report-mailbag

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Investment advisory services are offered through Foundations Investment Advisors, LLC and is a SEC registered investment advisor.