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The CARES Act: How Coronavirus Is Affecting Your RMDs

The CARES Act: How Coronavirus Is Affecting Your RMDs

March 26, 2020

I hope this email finds you and your family healthy and well.

In addition to the changes we’ve had to make to our lifestyle and lives, Congress is also making changes to the tax code.

Today, the President signed into law the massive CARES Act – (Coronavirus Aid, Relief, and Economic Security Act). Among the many provisions of this legislation is a waiver of Required Minimum Distributions (RMDs) for 2020. This means that anyone over the age of 70 (parents, friends etc…), will not have to take any distributions from their IRA or other type of retirement account.

However, if you HAVE ALREADY taken your 2020 RMD, the good news is that you have 60 days from the time you received your check to put it back into your IRA so it is not taxable for 2020.

Of course, they will still be able to take distributions from their IRA and pay the tax or have them sent to their designated charity/ies.

Please pass this along to anyone you think this may pertain to.

If you or anyone you know have any questions regarding this new tax law, the economy, the markets, or world events, please do not hesitate to contact our office.

Remember - It’s not about THE economy, it’s about YOUR PERSONAL economy.