Financial Planning

In response to the Coronavirus and its impact on the nation’s economy, President Trump signed into law the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) on March 27, 2020. Provisions in the Act waived required minimum distributions (RMD) from tax-deferred retirement accounts allowing individuals to forego, not just postpone, their RMD in 2020. Furthermore, one RMD withdrawal taken before the Act was passed could be redeposited (rolled over) back into the account within 60 days after the Act’s passage.

On June 23, 2020, the IRS released further guidance on the RMD waiver for 2020. Any taxpayer with a defined-contribution retirement account (401(k), 403(b), IRA, Inherited IRA, etc.) will have the opportunity to forego their 2020 RMD or repay (rollover) all required distributions they have taken so far this year to their account. This includes individuals who turned 70 ½ in 2019 and required to take their first RMD by April 1, 2020. To give individuals time to consider their options, the deadline to rollover the distributions has been extended to August 31, 2020.

Please contact your advisor or IRA custodian to assist with the rollover of RMDs taken this year.

Additional information can be found in the IRS’s Notice 2020-51 (PDF).

Consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.