Pay My Invoice

RMDs and the CARES Act

2020 – 06/24 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. Contact us with questions.

06_24_20_1178585447_ftp_560x292_2.jpg

©2020 Bland Garvey CPA