Can You Cancel an RMD?

People often ask how to cancel a Required Minimum Distribution. The short answer: a required distribution can’t simply be cancelled, but you have options depending on what happened.

If you haven’t taken it yet

Many custodians set up automatic RMD payments. You can usually change the timing or amount with your custodian, as long as the full required amount comes out by the deadline (December 31, or April 1 of the following year for your very first RMD).

If you took more than required

The extra amount does not count toward next year’s RMD. Amounts above the RMD may, in some cases, be rolled back into an IRA within 60 days. The required portion itself can never be rolled over. Rollover limits apply, so check before acting.

If you took an RMD you didn’t need to take

Rules have changed several times in recent years, including changes to the starting age, so some people took distributions that turned out not to be required. Whether any of it can be put back depends on timing and the IRS’s current relief rules.

Before you call your custodian

• Know your required amount for the year and what has already been paid out.
• Ask whether taxes were withheld; that changes the numbers.
• Confirm the tax effect before reversing anything.