Category Archives: Blog

August 31, 2020 Deadline to Roll Back RMD’s Taken for 2020

June 26, 2020

The IRS issued new guidance this week regarding Required Minimum Distributions (RMD). Long story short: RMD not required for 2020 and if you have already taken your RMD, you have until August 31, 2020 to put it back in the IRA and not pay tax on the RMD.

As a reminder, in March the CARES Act was passed that suspended the Required Minimum Distribution for 2020. This applied to anyone that was required to take a distribution from their IRA or other defined contribution plans (does not apply to defined benefit plans). This was easy for taxpayers who had not taken their RMD at the time the CARES Act was passed, as they just had to let their advisor know not to distribute the money during the year.

Things were a little more complicated for taxpayers who had already taken their RMD because, under the rules at the time, you only had 60 days to roll a distribution back into the account. If a taxpayer had taken an RMD on January 2, 2020, by the time the CARES Act was passed, the 60-day period had passed and the taxpayer could not roll that amount back into their IRA. Under the new relief, the recipient may repay the distribution to the distributing IRA, even if the repayment is made more than 60 days after the distribution, provided the repayment is made no later than August 31, 2020. The taxpayer who took out their RMD in January now has until August 31 to roll the funds back into the account.

The notice also provides that this repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.

Please call us for more information or clarification.

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Filing and Payment Deadlines Extended

March 24, 2020

The Treasury Department and Internal Revenue Service announced Friday that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. The deferral of income tax payments includes both 2019 balance due and the 1st quarter 2020 estimated tax payment.

Individual Retirement Account (IRA) contributions have been due by 4/15 of the following year to qualify for the prior year. With the extended due date of the income tax return, this also extends the date in which to make your IRA contribution for 2019 to 7/15/2020.

Arizona and Oklahoma have likewise extended the time for the filing and payment of taxes. Kansas has yet to enact a similar extension. We will keep you apprised of changes as they occur.

Thank you for your understanding. We hope you all stay healthy.

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RCM Office Makes Changes due to Covid-19 Situation

March 24, 2020

As the COVID-19 outbreak continues to evolve, we have found it necessary to change how we operate during the upcoming weeks. While we will continue to diligently serve our clients, we also recognize the importance of keeping our employees and our clients protected from this virus.

We recently moved to a mostly remote working environment. This means that our office location will have minimal staff on site, and we will be primarily interacting with our clients via telephone, e-mail, and our online portal.

Our phone systems and e-mail are fully functioning. Dialing our office number will route to our team as normal. We will make every effort to return telephone calls within 24 hours. We have had remote access for our employees for some time, so making the switch to a virtual environment should be fairly seamless.

We are going to minimize and discourage live client meetings in order to protect everyone’s health. Instead, we believe that sharing of data, phone calls and e-mail can effectively replace many of these meetings.

If you need to bring things to the office or pick things up from the office, we will have someone available to assist you. However, we strongly encourage you to mail information to us, or send it electronically. We will also be mailing more tax returns to our clients to minimize traffic in and out of the office.

Many of you currently use our online portal to send and receive documents electronically. Please contact us if you would like to have a portal set up for your use.

The US Treasury Department has extended the time for filing and payment of taxes due. Arizona and Oklahoma have likewise extended the time for the filing and payment of taxes. Kansas has yet to enact a similar extension. We will keep you apprised of changes as they occur.

We appreciate your patience and understanding as we move through the coming weeks. If we can be of assistance to you, please let us know.
Thank you for your understanding. We hope you all stay healthy.

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