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There is economic relief this year through the CARES Act, because of the Coronavirus. One way it impacts seniors is through changes to required minimum distributions (RMDs.)
The Secure Act, passed last year, had already changed the starting time for RMDs from the year in which you turn 70 1/2 to the year in which you turn 72. The new CARES Act takes this even further...
Temporary Waiver of Required Minimum Distributions for Certain Retirement Accounts
The CARES Act waives all required minimum distribution requirements for tax-qualified defined contribution plans, including 401(k) plans), 403(a) and 403(b), government-sponsored Section 457(b) plans and IRAs for the calendar year 2020. The 2020 RMD waiver applies to individuals who have already been taking RMDs or those who would have taken their first RMD in 2020, including: (1) an individual who is 72 or older in 2020; (2) an individual who reached the age of 70½ prior to January 1, 2020; and (3) certain death beneficiaries.
Things to consider: The temporary RMD waiver applies to all individuals who were subject to an RMD requirement in 2020, not just those who may have been impacted by the coronavirus pandemic. If this waiver applies to you, be sure to monitor any updates to this legislation and make plans for taking required distributions in 2021. (from finra.org)
For more information about CARES Act 2020: Retirement Fund Access and Student Loan Relief, see the following FINRA link:
We are here to help. Please reach out if we can assist with your RMD questions or other investment questions. We specialize in making your retirement everything you've dreamed of!