2020 RMD Changes
This would typically be the time of year when we would remind our clients who are 70½ or older or have an inherited IRA, that it is getting close to time take their Required Minimum Distribution (RMD) if they haven’t done so already.
However, two things have impacted the timing of RMDs this year.
First, the Secure Act pushed back the age at which RMDs from IRAs or retirement plan accounts are taken from 70½ to 72, and allows traditional IRA owners to keep making contributions indefinitely. * This only applies to those who reach 70½ after 2019—if you turned 70½ in 2019 or earlier, you're unaffected.
The second effect on RMDs this year is the Cares Act which was passed in response to the COVID-19 pandemic. All RMDs for the 2020 tax year are waived including RMDs for inherited IRAs and for those who have a grace period during 2021. The waiver does not change the required beginning date for RMDs after 2020.
If you have questions about your RMD, please give us a call.