CARES Act waives your Required Minimum Distribution for 2020

The CARES Act has created changes to the Required Minimum Distributions for 2020

When the market has had big losses in the past, policy makers have stepped in and changed requirements for retirement accounts. Why? It is a way to keep our retirees’ livelihood sustained longer.  The government would rather implement a stopgap now.  It is a measure to keep you from going on governmental assistance later in life because you’ve overdrawn your investment in a down market.

When the CARES Act rolled out at the end of March 2020, Required Minimum Distributions (RMDs) were officially waived for 2020.  This means you do not need to take a distribution this year. This applies to IRAs and Inherited  IRAs.

We often encourage our clients to establish an automatic required distribution. If this is you –depending on your individual situation you may want to skip this years RMD and allow your account to better recover as the market bounces back.

What you can do now?   Contact us if any of the following apply to you:

 

Other investment account accommodations made in the CARES Act include:

Ready to get started? 

Contact Pleasant Wealth today to schedule your first free, low-tension meeting.