By Ian Berger, JD
IRA Analyst
Question:
For COVID “special” Aug 31 rollovers, am I allowed to return my 401(k) required minimum distribution (RMD) to my IRA?
Thank you,
Maria
Answer:
Hi Maria,
Yes, the CARES Act and subsequent IRS guidance allows unwanted 2020 401(k) RMDs to be repaid through rollover to an IRA (or company plan) by August 31.
Question:
My daughter worked for a social services employee and had a 403(b) tax-sheltered annuity plan. Some of the contributions came from her employee, some came from her. Can she “rollover” the contributions from her employer into a Roth IRA? Thanks so much!
Answer:
Yes, all 403(b) funds, including elective deferrals and employer contributions, can be converted directly to a Roth IRA. This can be done without having to first roll over the funds to a traditional IRA. Of course, she will need to pay income taxes on any amount converted, and the conversion cannot later be undone.
https://www.irahelp.com/slottreport/repayment-unwanted-rmds-and-roth-conversions-company-plans-today%E2%80%99s-slott-report-mailbag