IRS Extends 60-Day IRA Rollovers to July 15

Further, the IRS relief "does not cover the once-per-year IRA rollover rule. If an IRA owner did any IRA-to-IRA rollover (or any Roth IRA to Roth IRA rollover) within the 365 days preceding the receipt of the RMD, they don't qualify for this extension."

It's important to note also, Slott explains, that the once-per-year rule "does not apply to company plans, so if you took your RMD from a 401(k) for example, you can use this extension to roll it over to the plan or an IRA and eliminate the tax bill."

If an individual took their RMD from an IRA, they "could use this extension to roll the funds over to a company plan (if you still have one), since the once-per-year rule does not apply to rollovers from IRAs or company plans or vice versa," Slott said.

The relief also does not apply to Roth conversions. "So in some cases an unwanted IRA RMD that cannot be rolled over due to the once-per-year rule, can be converted to a Roth IRA, since the tax has to be paid anyway," Slott explained. "This will provide relief for some (but not all) of those who took an RMD and now want to roll it back get rid of the tax bill."

Slott added that he hopes the IRS will "provide more broad relief for these unwanted RMDs, but so far, this is all we have."

(Webcast on April 16: Stimulus Plan Update: Tax Impact of Early Withdrawals & RMD Waivers)