2020- 01/27 When tax laws change on short notice, the result may be confusion. Under longstanding tax law, owners of traditional IRAs had to begin taking required minimum distributions (RMDs) after reaching age 70½ to avoid penalties, no later than the following April 1. The SECURE Act, which was signed into law in Dec. 2019, raised the age to 72. However, many financial institutions had already sent notices to IRA owners who will turn 70½ in 2020 telling them of the need to take RMDs for 2020. The IRS has granted relief to institutions that sent out notices citing the prior law, but only if corrected notices are sent no later than April 15, 2020. Contact us with questions.

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