facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Required Minimum Distributions are Waived for 2020 Thumbnail

Required Minimum Distributions are Waived for 2020

The CARES Act, which was signed into law on Friday, March 27, 2020, provides broad relief to IRA owners over 70 ½ who normally are required to take a minimum distribution from retirement accounts annually.

The provision covers distributions from IRAs, SEP IRAs, and SIMPLE IRAs as well as 401(k), 403(b) and 457 plans.  No distribution will be required in 2020.  The waiver also covers those receiving required distributions from inherited retirement accounts.

If you have already taken your Required Minimum Distribution (RMD) from your own retirement account in 2020, whether a full or partial amount, and you want to put it back into the IRA there are provisions to do that.  The sooner you act, the easier it will be to do this.  

Unfortunately, distributions from a beneficiary account cannot be sent back.  

This ruling is helpful to retirees because the amount of the RMD is calculated based on December 31, 2019 account values.  Due to the decline in accounts that many have experienced in the last few weeks, this would require a larger than normal distribution as a percentage of the account.   By skipping 2020 distributions retirees can allow their accounts to recover.  

If you have questions about this recent change give us a call.  We will be glad to discuss it with you.

Written by Connie C. Guelich, CFP, AEP, CLU, ChFC.  This represents our views at the time of this writing, and it is subject to change.  It is not intended to be personal investment advice.   If you would like to discuss your own account, please don’t hesitate to call us.  We are here to help and welcome your call.