The COVID-19 Stimulus Bill that was just approved by Congress includes tax relief for retirees. The required minimum distribution (RMD) rules for Individual Retirement Accounts and 401(k)s are waived for 2020. This means that if you are required to take an annual RMD this year, and have not yet fulfilled this requirement, you can skip all distributions for this year. This waiver also applies to Inherited Beneficiary Retirement accounts.
Here are some actions you can take…
- If you are currently receiving automatic recurring RMD distributions from your TD Ameritrade retirement account(s) and wish to stop these for the remainder of this year (2020), let us know and we will stop these immediately upon your request. Your automatic distributions will then restart as is in 2021.
- If you are currently receiving automatic recurring RMD distributions and wish to take these from your Non-Retirement account instead for the remainder of this year (2020), let us know and we will get this setup for you. Your recurring RMD distributions will restart in your retirement account as is in 2021.
- If you do not want your RMD requirement waived for this year, no action is required, and you will continue to receive your distributions as is.
- If you have already fulfilled your RMD requirement for this year, this waiver does not apply.
1.”Retirement Savers come out ahead in the coronavirus bill” https://www.cnbc.com/2020/03/27/waiting-to-take-that-ira-withdrawal-congress-is-giving-you-a-pass.html
2.”Congress Suspends Required Minimum Distributions For 401(k)s and IRAs for 2020” https://www.forbes.com/sites/ashleaebeling/2020/03/27/congress-suspends-required-minimum-distributions-for-401ks-and-iras-for-2020-opening-window-to-tax-savings/#1d7710892cb6