Retirement Accounts and RMDs
2020 RMD WAIVED
The CARES Act suspends RMDs during 2020. This applies to Traditional IRAs, SEP IRAs, and SIMPLE IRAs, as well as401(k), 403(b) and Governmental 457(b) plans.
Furthermore, the relief applies to both retirement account owners, themselves,
as well as to beneficiaries taking stretch distributions.
The CARES Act not only eliminates RMDs for 2020, but any RMD that otherwise needed to be taken in 2020. More specifically, individuals who turned 70 ½ in 2019, but did not take their first RMD in 2019 (and thus, would have normally been required to take such a distribution by April 1st, 2020, as well as a second RMD for 2020 by the end of 2020) do not have to take either their 2019 RMD or their 2020 RMD.
Contact our office if you need to adjust your RMD instructions for 2020
Plan Withdrawals
- Waives the 10% penalty tax on early withdrawals up to $100,000 for coronavirus related hardship distributions.
- Exempts coronavirus related distributions from the 402(f)notice requirements and mandatory 20% withholding applicable to eligible rollover distributions.
- Permits the individual to recontribute the coronavirus related distribution within three years.
- Coronavirus related distributions are distributions made during 2020 to an individual who is diagnosed with COVID-19, who has a spouse or dependent diagnosed with COVID-19 or who experiences financial consequences as a result of COVID-19.