Tue, October 27, 2009
IRS Extends Deadline for Re-depositing 2009 Required Minimum Distributions
Under the Worker, Retiree, and Employer Recovery Act of 2008, Required Minimum Distributions (RMDs) for 2009 from IRAs were waived. People who inadvertently received a distribution were confused about their options, but the IRS has issued clarifying guidance.
Normally, tax rules provide that a distribution that is rolled back into the IRA within 60 days can be treated as though the income was never received.
The IRS has issued further clarification in Notice 2009-82 for people who have already received a 2009 required minimum distribution but would like to redeposit it.
Generally they have until the later of Nov. 30, 2009, or 60 days after the date of the distribution to return the distribution to the account. The IRS has a news release on the provision for redepositing RMDs on its web site.