We hope that you are safe and sound! Many thoughts and prayers sent your way. Today, we have 3 main points we want to emphasize as we are dealing with the chaos of Covid-19.
- In previous email, we discussed the provisions of the CARES Act. One of the key provisions is that you are not required to take Required Minimum Distributions (RMDs) for 2020 whether you turn 72 this year or are older from Individual Retirement Accounts (IRAs), 401k, 403b, TSP, or other type of tax-qualified retirement account or have an inherited IRA that you may have received from someone like your parent, other loved ones, or friends.
- As we focus on retirement income, first and foremost, if you need your RMD to meet your income needs and obligations please continue to draw it.
- We recognize that for some of our clients they really do not need their RMDs to meet their retirement income needs and prefer not to take it. Our team is trying to work to reach out to clients who have communicated to us in the past about this. However, this is one of the main reasons or this email. Please reach out to us as soon as possible if you have one automatically scheduled to come up and you would like us to stop for 2020 and then continue for 2021.
- What if I took my RMD already in 2020 and I would have preferred not to do so? We have been researching this and there is nothing definitive on this. A lot has taken place due to Covid-19 and the commentary is limited. If you took your RMD in January or early February, we are not sure what recourse we can do. We have read some practitioners say that if you have taken your RMD within 60 days and want to put it back, we may be able to use the 60-day rollover rule and put it back. Each person is allowed only one per year. If this applies to you, please reach out to our team and we will work with providers to see what we can do.