Individuals who received mandatory payments from qualified retirement accounts earlier this year now have until the end of August to return funds they don’t need without facing any tax penalties.
Lawmakers waived required minimum distributions for 2020 as part of their virus-related relief efforts. The $2 trillion stimulus law included a 60-day replacement period during which account holders and beneficiaries of others’ 401(k)s could return the distributions.
On Tuesday, the IRS issued guidance (Notice 2020-51) expanding the replacement period until Aug. 31.
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