The IRS may have good news for some retirement account owners.
June 25, 2020
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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