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New (Temporary) RMD Rules Offer Potential Planning Opportunities – Season 2: Episode 12

The COVID-19 outbreak has brought with it several changes for people who are facing deadlines, including filing federal and state income taxes. Another big one has to do with Required Minimum Distributions (RMDs) for 2020 – and maybe for 2019 as well.

When the SECURE Act passed at the end of 2019, it changed the age at which IRA owners must begin taking RMDs, from 70 ½ to age 72. Several weeks later, in response to the pandemic, Congress made changes again to the RMD rules through the CARES Act, allowing for more flexibility and the potential to skip the distribution for 2020.

In the week’s episode of Managing Your Financial Future, hosts Johnny Dean and “Professor” Rick Plum, CFP® explain the new rules of both RMDs and withdrawals from company-sponsored plans like a 401(k). Who can do what, where and when? Tune in, and get the latest!

Important Information:

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.

IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.

The investment professionals are registered representatives with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. Lucia Securities, LLC was acquired by LPL Financial August 2020. The investment professionals of Lucia Securities, LLC are now affiliated with LPL Financial and are conducting business using the name Lucia Capital.

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