Required Minimum Distributions Suspended for 2020

In case you missed the update in our CARES Act Summary, we want to call your attention to a very important item to note about Required Minimum Distributions (RMDs) for 2020.
RMDs are suspended for 2020, including inherited IRAs as well as traditional IRAs of those over age 70½. Contact your financial advisor to ensure your RMD will not be automatically withdrawn. Two of the most common questions we’ve received are answered below:
Should I take my RMD for 2020 anyway?
  • Possibly, if you are in a lower tax bracket this year as a result of changes to your financial situation. Check with your tax advisor if you’re considering this option.
What if I already took my 2020 RMD?
  • Option 1: Include it in your 2020 gross income and pay taxes on it.
  • Option 2: If it was withdrawn within the last 60 days, you can return the distribution or deposit in another qualified retirement account or consider a Roth conversion.
Note: The IRA contribution deadline for 2019 is delayed to 7/15 in accordance with the tax return deadline.
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