The CARES Act and Your Retirement – April 20, 2020

Among other things, the CARES Act aims to help small businesses and those who have lost their jobs. In addition to the stimulus checks for taxpayers who qualify, the act also changes some rules that govern retirement accounts for 2020.

While there have been a few changes for retirement accounts under the CARES act, the change I’d like to highlight is the RMD. The required minimum distribution (RMD) is waived in 2020, including 401(k), 403(b), 457(b) plans, and SEP IRAs, SIMPLE IRAs, and traditional IRAs.
The waiver includes RMDs for those who reached age 70½ last year and who would be required to take their first RMD by April 1 of 2020. This waiver also includes RMDs from inherited IRAs for 2020.

Created 2020-04-20 16:29:39