This year, retirees can skip their annual required minimum distribution from their individual retirement accounts and 401(k) plans. If you've already taken the money, you have until the end of August to put it back.
"The people you'll need to contact — the institution, your advisor — they could be away," said Ed Slott, CPA and founder of Ed Slott & Co. in Rockville Centre, New York.The earlier you return the RMD, the better, because there are many ways for the transaction to go wrong.RMDs from traditional IRAs and 401 plans are subject to income taxes, so waiving the distribution or returning the funds could help you save on levies.
"Say you took a $10,000 RMD, but $2,000 in taxes were withheld," said Slott. "If you roll back only the $8,000, you'll be taxed on the remaining $2,000 you didn't roll over."katleho Seisa
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