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!
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.