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2020 Required Minimum Distributions Suspended by CARES Act

April 3, 2020

 

We hope you and your loved ones are safe and in good health.

We want to make you aware of a change which could impact you as a result of the 2020
CARES Act.

Individuals who take required minimum distributions (RMDs) from IRAs (and 401(k), 403(b)
and some 457 plans) may not have to do so in 2020. This would be very beneficial to clients
who either do not need the distributions or those who could take withdrawals from non-retirement
accounts instead. Those who have already taken distributions within the last 60
days may be able to roll them back, but there are some restrictions you will need to be
aware of.

We suggest you reach out to your accountant as quickly as possible to see if this applies to
you. If you can benefit from this change, please let us know immediately.

As a reminder, funds withdrawn from IRA accounts are taxed as ordinary income, and not
taking a distribution this year could save you income taxes.

We look forward to hearing from you as soon as possible.

Sincerely,

The Portfolio Strategy Group

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Disclosure:  The information and opinions shared by The Portfolio Strategy Group, LLC (PSG) are for informational purposes only.  This commentary identifies select developments that may be of interest to its readers.  The material contained herein is summarized and abridged from various sources where the accuracy and completeness cannot be guaranteed.  Reference to a particular company or strategy does not constitute legal, tax or investment advice, and should not be interpreted as a specific recommendation to buy or sell securities or other financial products (company or industry discussions do not necessarily reflect any or all buys or sells by PSG during the quarter).  All investing includes the risk of loss, including the possible loss of principal.  These observations are proprietary in nature and may not be reproduced or disseminated without PSG’s written consent.