Can you cancel an RMD?
The short answer is no. But you have choices. Here is what you can do, case by case.
The short answer
A required distribution cannot be cancelled. You still control when in the year you take it and which IRA it comes from. You also control how much tax is held back.
If you have not taken it yet
Many banks and brokers send RMDs on their own. You can usually change the date or the amount. Make sure the full amount comes out by the deadline.
The deadline is December 31. For your very first RMD, it is April 1 of the next year.
If you took more than you had to
The extra does not count toward next year’s RMD.
You may be able to put the extra back into an IRA within 60 days. The required part can never go back. Rollover limits apply, so check first.
If you took an RMD you did not need
The start age changed twice in a few years. Some people took money they did not have to. Whether you can put it back depends on the dates and on any relief the IRS has given.
Before you call your bank or broker
- Know this year’s required amount and what has already been paid.
- Ask if tax was held back. That changes the math.
- Check the tax result before you undo anything.
Get the free RMD Survival Kit
Four short tools to help you get your RMDs right: a plain-English guide, a deadline calendar, a “missed an RMD?” checklist and a worksheet. Sent to your inbox.
Rather talk it through? Schedule a meeting or call (408) 786-0508.