The following is most fitting for someone who may have taken RMD’s in the past, or think they may have to start this year!
The Care Act was signed into law on Friday, March 27, 2020 and includes a provision Waiving ALL RMD’s for the year 2020.
Required Minimum Distributions (RMD’s) Waived in 2020
All RMD’s for any and all mandatory plans are waived as of 2020.
This includes all types of RMD’s including those with the five year rule.
Next year will not mandate a doubling or catch up of the RMD.
Next years RMD will be on the higher mandated level, but again will not cause a duplicate/catch up.
Just because you do not have to take your RMD, does not mean you necessarily need to stop. Those taking regular monthly distributions may continue to do so. Those with larger pools of IRA type of assets may want to continue to do so, maximizing current income tax brackets. Those having no need or desire to take their RMD may want to happily skip this year!
Have a Great “Waived RMD” Day!
John A. Kvale CFA, CFP