In 2019 the federal SECURE Act was passed. It changed the age required for people to begin taking Required Minimum Distributions (RMDs) from 70 ½ to 72. This change was only going to affect those turning 70 ½ in 2020 and beyond. However, this became moot with COVID-19 related RMD reforms.
The CARES Act was one part of three massive stimulus bills passed by Congress in response to the economic distress caused by the novel Coronavirus. With the CARES Act came unemployment benefits, tax deferrals, stimulus checks, and the suspension of RMDs.
The CARES Act waived the RMDs from IRAs, inherited IRAs, and 401(k) plans for all, including those who turned 70 ½ in 2019 and did not take their RMD prior to April 1, 2020. Distributions will resume in 2021.
You are allotted one 60-day rule rollover per 365 days for IRA distributions and 401k distributions. If your distribution was taken within this term it may be eligible to roll back into your retirement account.
Please let us know if you’d like to suspend your scheduled RMD or have it processed as planned for 2020.
At Karp Capital we focus on your financial health, so you can focus on your physical and mental health and well-being.
The posted information is for informational purposes only. Karp Capital Management does not offer tax advice, please consult with your CPA or tax professional. Advisory services offered through Karp Capital Management an SEC registered investment advisor. The past performance of securities or other investments does not necessarily indicate or predict future performance, and the value of investments. This communication does not purport to be a complete statement of all material facts related to any company, industry, security or investment strategy. Securities offered through Infinity Financial Services, member FINRA/SIPC. Karp Capital Management is not an affiliate of Infinity Financial Services.