6.25.20

The IRS may have good news for some retirement account owners.

The IRS may have good news for some retirement account owners.

Generally, taxpayers with certain retirement accounts must take required minimum distributions after reaching a certain age or face stiff penalties. The CARES Act enables taxpayers with an RMD due in 2020 from an IRA or a defined-contribution retirement plan, including a 401(k) or 403(b) plan, to skip those RMDs this year. This includes anyone who turned age 70½ in 2019 and would have had to take the first RMD by April 1, 2020.

This waiver doesn’t apply to defined-benefit plans. Those who have already taken an RMD for 2020 can roll those funds back into a retirement account.

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