Required Minimum Distributions (RMDs) are generally required to start from an employer retirement plan or IRA by April 1 of the year after the plan participant or IRA owner reaches age 70½ (age 72 for those who reach age 70½ after 2019). These required distributions continue throughout the life of the individual.
However, due to CARES Act provisions, RMDs are not required in 2020 from IRAs and defined contribution plans (other than Section 457 plans for nongovernmental tax-exempt organizations). This exclusion also includes any first-time RMDs for 2019 with an April 1, 2020, required beginning distribution date. This one-year suspension does not generally affect how RMDs are determined after 2020; the pre-CARES Act provisions will apply unless there is additional legislation.
ROLLOVER TREATMENT: If an individual receives a 2020 RMD payout, there is a 60-day window to return the distribution and treat it as a rollover, thus avoiding taxes on what would have been a taxable payout. A special provision included in the CARES Act allows for an extension of this 60-day window. If the 60 days would have expired on or after April 1, the rollover deadline is extended until July 15.