As a part of the CARES (Coronavirus Aid, Relief and Economic Security) Act that was passed over the weekend, the 2020 Required Minimum Distribution (RMD) can be waived for the current year (2020). The CARES Act includes RMD’s from Traditional IRA’s, Inherited IRA’s, 401(k) and 403(b) accounts.
This suspension of RMD’s is welcome news for those who don’t need or want to take distributions when many portfolios are down since the market highs of Dec. 31, 2019, the date in which RMDs for 2020 are calculated. This change is to assist in the relief of retirees who do not need the money to live on. With the market reacting to the COVID-19 pandemic, the ability to choose to waive your withdrawal prevents you from having to sell funds in order to meet the RMD amount. This choice to waive RMD’s is very beneficial and will also have the ability to lower your tax obligation for the 2020 year.
However, this is a choice. So if you still want to take your distribution as normal, there is nothing that needs to be done.
If you do not want to take your 2020 RMD please notify us and we will make sure to skip the distributions for this year.
If you have already begun distributions for 2020 and wish you had not, there are some ways to possibly rectify that.
You can call or email Tanisha at our office – firstname.lastname@example.org
And as always, if you have any questions at all, please feel free to call or email any of us.
Audrea attended the University of Alabama in Tuscaloosa, where she majored in one of the first approved financial planning programs taught at the University level. In 1998 Audrea graduated from The University of Alabama in Tuscaloosa with a Bachelor of Science degree in Family Consumer Sciences & Financial Planning. Audrea has over 19 years of experience as a Financial Advisor with Money Management Services. She holds the designations of AIF® (Accredited Investment Fiduciary), CRPS (Chartered Retirement Plan Specialist) & CES™ (Certified Estate and Trust Specialist). As an advisor, Audrea specialized in comprehensive financial planning, estate tax planning, personal taxation planning, retirement income distribution planning, wealth accumulation, personalized portfolio management, and fiduciary investment management services.